Macroeconomics monetary policy/Macroeconomic policy

Required Readings: Introduction to Monetary Policy

US Treasury Building

Before moving on, it is best that you take some time and get a grasp on some of the fundamentals of monetary policy.

While reading, consider the following questions:

1. While the example here is American, how different or similar is monetary policy where you live?
2. What do you think some of the results are from the shift from fiscal to monetary policy?

• Read "US Department of State: Christopher Conte and Albert R Karr's "An Outline of the US Economy" from Chapter 7: of the Monetary and Fiscal Policy text book, which gives you an overview of the breadth of the reach of the US government when it comes to monetary policy.

• Read MIT: Veronica Guerrieri's "Principles of Macroeconomics, L16-L17: Monetary Policy" lecture notes, which provide important details regarding attempts to manage the money supply and interest rates while achieving macroeconomic goals. As you are likely aware by now, monetary policy and fiscal policy are two instruments by which governments address economic expansions or contractions. As you progress in this course, keep in mind one instrument may be more effective in addressing those matter

Having read these texts, jot down any of your reflections, thoughts or questions on this subject in a WeNotes post.