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What is monetary policy? What changes has it made to the economy for the past 20 years?

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What is monetary policy? What changes has it made to the economy for the past 20 years?

 

 

POLICY

 

The policy is generally a set of principles of a deliberate system that helps guide decisions to achieve a more rational outcome. The plan is usually implemented in a protocol or procedure as a statement of intent. The governance body in an organization is the one that adopts the policy, which generally assists in both the objective and the subjective decisions traditionally made by the senior management. These decisions are based on some factors’ relative merit, making it hard to test the results objectively, such as the work-life balance policy, which is generally the lack of opposition between the other life’s role and the work. The policy terms are flexible. They may be applied to a private-sector organization and groups. Individuals or the government, amongst others.examples of policy, are the parliamentary rules of order, corporate privacy policies, and the presidential executive orders amongst more others is then very different from the standards and laws. The progress that ensures proper organizational decision making is known as the policy study.

 

ANSWER

 

Monetary policy is the adopted policy by the monetary authority of governance aimed at controlling interest rates. the fiscal policy has made several impacts to the economy within the past 20 years which include;

the increased money supply is achieved by the expansionary policy which is a form of monetary policy that is mainly involved in maintaining a lower short term interest rate

There is a slowed-down economic growth rate. The slowed-down economy usually is due to the contractionary monetary.this is a policy that supports the short term interest rates to a higher level than the usual hence slowing down the money supply rate.

 

Reference

Colebatch, H. K. (2009). Policy. Maidenhead: Open University Press.

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