Chapter 9 - Monetary policy
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Last updated 10:50 PM on 1/4/25
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12 Terms
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Monetary policy
Central bank policy and decision to generate Y9 (econ growth)
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Fiscal policy
Gov drafted policy to grow econ and increase employment
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Inflation
Annual avg increase of goods in econ
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Deflation
Annual avg increase of goods in econ
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PC
RS btw inflation, growth/U for a given actual inflation expectation
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Quantity theory of money
inlfation is caused by change in M S=
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rp
r level set by central banks to stabilise economy
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Quantitative easing
OMO monetary policy to stimulate economy when r targeting fails
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Note 
Flashcards (27)