Monetary Policy is one the important drivers in growth & development of an economy. Illustrate at least four instruments/tools which are used universally in implementation of monetary policy.
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- How does high inflation lead to a recession in the country? Explain the role ofthe Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies. Are there anypotential problems with such policies? Please answer in detailTrue-False with explanationA monetary expansion only changes inflation on the long runHow does high inflation lead to a recession in the country? Explain the role ofthe Government and the Central Bank to address the economic recessionproblem by using appropriate fiscal and monetary policies. Are there anypotential problems with such policies? Please answer in detail and could you please add links off where you got the information.
- Does the Monetary Model imply that inflation in a country (in particular a major economy like the United States or the Eurozone) should spread to other countries? If so, whey many East Asian economies have not caught up in inflation recently? Please offer your own reflection.Monetary policy affects the economy with a lagmainly because it takes a long timea. for central banks to make policy changes.b. to change the money supply after a policydecision has been made.c. for a change in the money supply to affectinterest rates.d. for a change in interest rates to affect investmentspending.During an economic downturn, a nation's central bank decides to implement quantitative easing by purchasing large amounts of government securities to increase the money supply and encourage lending and investment. This policy action is intended to:A) Tighten the money supplyB) Increase interest ratesC) Stimulate economic growthD) Reduce public spending Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
- How is a monetary policy rule helpful for understanding U.S. monetary policy?Expansionary monetary policy in Europe: Suppose the European Central Bankdecides to stimulate the European economy by reducing interest rates there.Use the AS/AD model to explain how and why this afects the U.S. economyin the short run. How does the economy return to steady state?If the president of the central bank in this economy is convinced that there is no need for any monetary policy actions for the economy recover from the pandemic. If his/her opinion is followed, explain whether you think the president’s opinion is good for the citizens of this economy?
- Which institution conducts the monetary policy of the Republic of Turkey and what is theprimary objective of that institution?Using the macro model we learned in this class (MP-IS and AD-AS framework) consider the current crisis. Consider the monetary policy responses to the covid pandemic crisis. Develop separate analysis for an economy which have positive policy rates vs an economy which is at the zero lower bound. Would it require different monetary policies? If so how? What would you expect to happen to the inflation rate, unemployment rate, and economic growth in the near future? Use graphs for each case.There are so many macroeconomic problems which appear time by time to affect the economic environment of any country. Enlist the most prominent macroeconomic problems which need proper attention of policy makers in Pakistan. Furthermore, if we focus on one of the macroeconomic problems that is, the problem of inflation which generally drops its negative repercussions when it hits the economy. So how the monetary authority in the country tackles this harmful problem through the conduct of monetary policy? Enlist the quantitative and qualitative instruments of monetary policy to answer the above statement.
