What r the types of monetary policy "strategies" that a central bank can use?
provide with sources; thank u
Answer
Generally, the federal reserve will increase interest rates, which slows down the economy and decreased inflation. the other ways for monetary policy to work include changing the money supply directly and changing the reserve requirements. they have the same general trickle effect.as for the actual strategies, they can increase money supply or decreasing depending on where the economy is at.
