Econ: public finance

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timer Asked: Dec 11th, 2018
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Question Description

The paper is to write 8 pages on this topic: Impact of Monetary policy.
The research is to answer questions related to the topic so remeber to state your research questions.

Book: Hyman, David N., Public Finance. 11th Edition, Cingage Learning
- Please note that Professor is too serious about Plagiarism so please make it different.

Tutor Answer

NicholasI
School: Cornell University

please use this

Running Head: IMPACTS OF MONETARY POLICIES

Impacts of Monetary Policies
Student’s Name
Institution
Date

1

IMPACTS OF MONETARY POLICIES

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Introduction
Monetary policy includes the processes of drafting in a comprehensive manner and
afterward implementing the plan of actions agreed upon and taken by the authoritative bank in
place and most cases, it is usually the central bank or in some cases, a recognized and competent
authority in the country that is charged with responsibilities of regulation. Just as the name
suggests, monetary policies are therefore policies that are initiated by the central bank or a
specifically designated bank, to help in providing guidance on matters that relate to money and
its optics.
Monetary policies aim at some activities that involve the use of money, and this includes
the following; interest rates, inflation, consumption rates, growth and even the liquidity of the
money itself. This paper will aim at elaborating more on the monetary policies while at the same
time ensuring that its impacts are well mentioned and understood.
Research Questions
What is monetary policy all about?
What are the types of monetary policies being used?
What are the tools used to implement monetary policies?
What are the impacts of monetary policies?
The Idea of Monetary Policies.
As mentioned in the introduction, monetary policies are put in place to act as regulators
of how money is used to affect particular situations in the economy and also in the lives of the
individuals in a particular faction. Monetary policies have been in existence for quite some tike

IMPACTS OF MONETARY POLICIES

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and now and they are usually initiated as answers to economic problems that are caused by poor
monetary practices. It is therefore only a rational argument to mention that these policies, end up
having some impacts in the long run and these impacts fall on a number of sectors and even to
individuals.
Types of monetary policies
To increase their efficiencies, monetary policies have been categorized into two broad
categories. This has also been done to help in making sure that the policies reciprocated the
intended purpose they are made for. The two types of monetary policies are either expansionary
or contractionary.
Expansionary monetary policies are those policies that aim at revamping and expanding
different aspects of the economy. This could range from making sure that the economy grows to
expand the overall and general economic activities in a country. A perfect example of an
expansionary policy is when a country is being faced with very high levels of unemployment and
opt for monetary policies that will go a long way to making sure that the number of economic
activities in the country is increased, and with this, many employment opportunities will be
generated in the process.
On the other hand, contractionary monetary policies are the exact opposite of the
expansionary monetary policies. Contractionary monetary policies aim to restrict particular
economic behavior that is deemed to be harmful to the overall prosperity and growth of the
economy. This can be done through interest rates control and hence the result would be a
restricted economic activity.
Tools to implement monetary policies

IMPACTS OF MONETARY POLICIES

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To have these monetary policies in place and be respected by every stakeholder, it is
important that the right tools and mechanisms are put in place to help them work properly and
efficiently. The central bank which in most cases is the body that implements these monetary
tools uses some tools to help in making sure they are adhered to, and the greatest of th...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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