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What are the basic objectives of monetary policy

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What are the basic objectives of monetary policy? Comment on the cause-effect chain through which monetary policy is made effective. What are the major strengths of monetary policy

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Data specification:The important objective of the monetary policy is to stabilize the economy. According to the macroeconomic theory, the boom period includes the feature of inflation for an economy. The central banks of every country take contractionary monetary policy measures to stabilize the economy during that period. It helps to lower the price level and control inflation .

Reference no: EM131519174

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