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Article 10
Article 10

... how central banks manage liquidity to create economic growth (Amadeo, 2017).Implementation of the monetary policy is carried on by the central bank. There are two types of monetary policy: expansionary and restrictive monetary policy. Expansionary monetary policy is when a central bank uses its tool ...
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... D. exports to the rest of the world while maintaining protectionist policies on imports into its economy. E. has an open economy and produces those goods in which it has the highest opportunity cost and exchanges them for other goods. 41. When a bank makes a loan by crediting the borrower’s checking ...
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GENERAL ECONOMICS­II    UNIVERSITY OF CALICUT  SCHOOL OF DISTANCE EDUCATION 
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... 15. In all balance of payment accounts, there are a fictitious head of account called:  a) Invisibles  c) Reserves  b) Deficits  d) Errors and omissions  ...
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... prices over our period was the changing world production of gold, we refer to the shock that has a long run impact on prices as the money supply shock.13 Using this identification of supply and money supply shocks we can measure separately the effect of each on output. Thus this identification sche ...
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Chapter 32 - McGraw Hill Higher Education - McGraw

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1-Introduction-FS - National Skills Academy for Financial Services

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... past 13 months, there are still over 7 million fewer jobs in the United States than we had before the downturn. The recovery has sputtered at times and our forward progress has been disappointingly slow. That’s actually not too surprising though, given the type of recession we’ve been through. Exper ...
The Basics of Interest Rates
The Basics of Interest Rates

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Money supply

In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. There are several ways to define ""money,"" but standard measures usually include currency in circulation and demand deposits (depositors' easily accessed assets on the books of financial institutions).Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its effects on the price level, inflation, the exchange rate and the business cycle.That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. For example, a country such as Zimbabwe which saw extremely rapid increases in its money supply also saw extremely rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling inflation.The nature of this causal chain is the subject of contention. Some heterodox economists argue that the money supply is endogenous (determined by the workings of the economy, not by the central bank) and that the sources of inflation must be found in the distributional structure of the economy.In addition, those economists seeing the central bank's control over the money supply as feeble say that there are two weak links between the growth of the money supply and the inflation rate. First, in the aftermath of a recession, when many resources are underutilized, an increase in the money supply can cause a sustained increase in real production instead of inflation. Second, if the velocity of money (i.e., the ratio between nominal GDP and money supply) changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP.
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