Macroeconomics monetary policy/Issues with monetary policy

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Goals, measures, and challenges: A video signpost

Up until this point we've looked at monetary policy as if it was relatively neutral but, clearly, there are some drawbacks and issues.

In this Khan Academy video, the weaknesses of the fractional reserve lending system are discussed.



Next read 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"