How do you decipher a monetary policy, and make intelligent observations about it?

Monetary policy is designed with two goals. The first and the most important goal is to keep inflation low and predictable. The second goal, which is often considered to be less important these days, is to offset adverse shocks that affect unemployment and production.

The art of monetary policy has evolved tremendously in the last 30 years. In the "old days", central banks used monetary aggregates (M1, M2, etc.) as their targets. Today, most central banks use interest rate rules, which relate short-term interest rates to expectations about future inflation and unemployment.

The answers post by the user, for information only, does not guarantee the right.

More Questions and Answers:
  • What is the role did haciendas play in the economy?
  • What is collective bargaining?
  • The demand curve facing the dominant firm in the price leadership model is derived by subtracting the...?
  • Did you know 5% of the u.s. population earns 95% of the money?
  • If the government gives a 100 subsity to renters to help with apartment cost.?
  • How can the middle class survive when their wages can no longer keep up with the cost of living anymore?
  • Why does it cost 2 American Dollars for every British Pound?
  • I found it interesting that 80% of American cash abroad is in the form of $100 bills. Why do you think that is
  • How to calculate nominal gross domestic product?