Find an article (newspaper, magazine, or online) that discusses monetary policy.

Question

Find an article (newspaper, magazine, or online) that discusses monetary policy. Use the article to answer the following questions. 1. The article indicates what monetary instrument(s) is/are being used by the central monetary authority? 2. Which instrument of monetary policy is being used (for example, "reserve requirements," "open-market operations," or "discount rate")? 3. Which of the following best summarizes the effect of the monetary policy on the quantity of money? A) Does it lower the quantity of mney below what it would have been without the change in policy; or B) Does it raise the money supply above where it otherwise would have been. 4. Indicate the source (name of newspaper or magazine or website address), title (headline or article name), date, and page for the article you have chosen. Submit a Word or Rich Text Format (.rtf) document. The expectation is for you to research the questions, give specific and accurate examples, describe the situation and summarize the article, and give proper references. The assignment should be between 350 - 500 words. Short answers (one word, or short sentences) or incomplete answers will not earn full credit.

Explanation / Answer

Article : Quantitative Easing (QE) is not meant for saving banks

Answer 1: QE is an unconventional form of monetary policy. Central Bank creates new money electronically to buy financial assets, like government bonds.

Answer 2: Quantitative Easing includes monetary policy of discounted rates. It aims at lowering the interest rates and increasing the money supply.

Answer 3: Option B. It raise the money supply above where it otherwise would have been.

Answer 4: Monetary policy and economics: QE was not about saving the banks. Sep 28th 2015, BY BUTTONWOOD. Available at: http://www.economist.com/blogs/buttonwood/2015/09/monetary-policy-and-economics

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.