Monetary Policy Flashcards
1
Q
4 tools of monetary policy
A
Interest rates
Availability of credit
QE
Exchange rate policy
2
Q
Monetary stimulus
A
Changes in monetary policy designed to increase AD
3
Q
Monetary police transmission mechanism
A
Changes in interest rates influence AD output and prices
4
Q
Interest rates
A
Cost of borrowing and reward of saving
5
Q
Evaluation of QE
A
BOE own 94% of bonds only 6% can influence AD
increased inequality
Time lags
