Central bank implements monetary policy

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Reference no: EM133132785

"A key role of central banks is to conduct monetary policy to achieve price stability (low and stable inflation) and to help manage economic fluctuations."

  1. Discuss this statement by defining monetary policy. 
  2. Identify the tools used to implement monetary policy. 
  3. State and explain at least 2 limitations when the central bank implements monetary policy. 

Reference no: EM133132785

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