Terms

Monetary Policy

Monetary Policy

Monetary Policy refers to the actions undertaken by a nation’s central bank to control money supply to achieve macroeconomic goals that promote sustainable economic growth. Generally classified as either expansionary or contractionary, Money Policy is utilized to achieve objectives including inflation, consumption, growth and liquidity. It has a great influence on the economic activity by manipulating the supplies of money and credit, and by altering these interests, by including tools such as open market operations, direct lending to banks, bank reserve requirements, unconventional emergency lending programs, and managing market expectations. The three objectives of monetary policy are controlling inflation, managing employment levels, and maintaining long term interest rates.

Entity Types

Central Bank

Terms

Credit
Economic Growth
Inflation
Interest Rate
Lending
Macroeconomics
Money

Mentioned by the Following

Entities

Baltimore Sun
Bank of Israel
C.D. Howe Institute
Deutsche Bundesbank
Federal Reserve Bank of Dallas
Federal Reserve Bank of Kansas City
Jefferson Financial
Macro Hive
Macro Intelligence 2 Partners
Mercatus Center
New Orleans Investment Conference
Quill Intelligence
Wall Street Daily

Events

Dirty Float Era
Federal Reserve Act of 1913
Glass-Steagall Act

People

Adam Posen
Caitlin Long
Charles Goodhart
David Andolfatto
David Kotok
Freya Beamish
Greg Mankiw
Ira Walker
Jeff Snider
Jens Nordvig
Jessica Rabe
John Taylor
Kenneth Rogoff
Kevin Warsh
Lacy Hunt
Lucrezia Reichlin
Magdalena Polan
Manmohan Singh
Marc Chandler
Megan Greene
Nomi Prins
Oliver Harvey
Pedro da Costa
Rohan Grey
Sean Fieler
Simon Bowmaker
Simon Potter
Srinivas Thiruvadanthai
Thomas Philippon
Trey Reik
Warren Mosler
Weston Nakamura
Will Denyer

Positions

The Weekly Quill
After Normal
Bull and Bust Report
Code Red
Factions and Finance in China
Foundations Of Financial Markets and Institutions
Grant's Interest Rate Observer
Inflation Targeting
Less Than Zero
Life in the Financial Markets
Macro Watch
Mindful Money
Political Cycles and the Macroeconomy
Princes of the Yen
Restoring Japan's Economic Growth
Soft Currency Economics II
The Anti‑Bubbles
The Basics of Finance
The End of Freedom
The Fall of the Euro
The Federal Reserve and the Financial Crisis
The Other Half of Macroeconomics and the Fate of Globalization
The Theory of Money and Credit
World Commodities and World Currency

Strategies

Quantitative Easing

Monetary Policy Includes:


Monetary Policy Can Also Cause Boom and Bust Cycles

  • Cheap money can cause inflated asset prices that will enentually pop.
  • Central Banks can prop up bubble for a long time, but they must pop
  • Ludwig Von Mises postulated that all booms generated by monetary and credit expansion will eventually bust