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Topic: Business
Number of pages / Number of words: 6 / 1448
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Monetary policy is categorized into two types: Contractionary and expansionary. Contractionary (or “tight”) monetary policy aims to reduce the amount of money circulating through the economy, and reduce short-term economic growth in exchange for higher (hoped-for) long-term growth. Expansionary (“loose”) policy, on the other hand aims to increase the money supply and increase short-term economic activity at the expense of long-term economic activity (bestwaytoinvest, 2007)...


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Expansionary (“loose”) policy, on the other hand aims to increase the money supply and increase short-term economic activity at the expense of long-term economic activity (bestwaytoinvest, 2007).

Macroeconomic factors

There are many Macroeconomic indicators that are affected by Monetary Policy...


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