Macroeconomics activity and demand/issuespolicy/E-activity-start

Challenge summary

Summary:	Reflections on issues surrounding monetary policy
	1 - 2 hours
	Linked to assessment

Understanding the drawbacks and limitations of monetary policy.

Start here

Stimulus resources

1. Complexity and the misery index and how they related to monetary policy.
2. Follow up by reading this section about the inability of low interest rates to induce borrowing by business for investment purposes from OpenStax College: "Macroeconomics, Chapter 15, Section 5: Pitfalls for Monetary Policy" to gain even better understanding of possible drawback to monetary policy.

Purpose

While governments, and different economists, espouse a variety of different monetary policies intended to create positive economic outcomes, there are limits and debate to be had about what they can actually do. The purpose of this learning challenge is:

• To learn about these limits.
• To learn about alternative measures.
• To understand the differences between these various policies and measures and their limitiations.