Tools of monetary policy, Tools of Monetary Policy -

Tools of monetary policy

Assignment Help Econometrics

Reference no: EM13914143

Tools of Monetary Policy - Explain why the number of tools (instuments) has to be less than or equal to the number of economic objectives (goals). To think about this question review what the Federal Reserve actually does -- acts as lender of last resort (too big to fail...) and controls the money supply (The FED does NOT DIRECTLY control any interest rate except the discount rate.). Think about the demand and supply of money diagram and what determines the price of money or the rate of interest.

Reference no: EM13914143

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