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Three Objectives of Monetary Policy Central banks have three monetary policy objectives. 1- The most important is to manage inflation. The secondary objective is to

Three Objectives of Monetary Policy

Central banks have three monetary policy objectives.

1- The most important is to manage inflation. The secondary objective is to reduce unemployment, but only after controlling inflation. The third objective is to promote moderate long-term Interest rates.

Explain how they can achieve all the above goals and what are the tools.

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