Monetary Policy Flashcards
1
Q
What are the limitations of Monetary Policy?
A
1) Uncertainty: with any policy there is uncertainty in how effective it will be.
2) Lack of Reliable Data.
3) Policy Makers do not know what the impact on economic variables such as inflation or economic growth will actually be when they introduce a policy.
4) It is hard to accurately measure the monetary supply.
2
Q
What are the four types ofmonetary policy?
A
1) Open Market Operations
2) Monetary Base Control
3) Rules and Regulations
4) Quantitative Easing
