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Monetary Policy
Understanding different banks
Interest Rate & Supply of money
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Monetary policy deals with interest rate, which interest rate could have a direct impact on aggregate demand
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By changing the supply of money in an economy, the interest rate could be adjusted
*By changing the supply of money, the interest could be adjusted
Inflation targeting
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Central bank sets a specific inflation rate for its goal and announce it to the public
Evaluation of monetary policy
Strengths of monetary policy
Weakness of monetary policy
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