Monetary Policy
Central bank actions controlling money supply and interest rates.
Detailed Description
Monetary Policy
What are the primary objectives of monetary policy?
The primary objectives are to promote maximum employment, stabilize prices, and achieve moderate long-term interest rates.
What are the two main types of monetary policy?
The two main types are expansionary and contractionary monetary policy.
How do central banks implement monetary policy?
Central banks implement monetary policy using tools such as open market operations, the discount rate, and reserve requirements.
What impact does monetary policy have on the real estate market?
Monetary policy affects the real estate market by influencing interest rates, which can affect borrowing costs and housing demand.
What is inflation targeting in monetary policy?
Inflation targeting is a strategy where a central bank sets a specific inflation rate as its goal to stabilize prices and guide economic expectations.