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Results tagged with monetary-policy
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user 250
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency. Further goals of a monetary policy are usually to contribute to economic growth and stability, to low unemployment, and to predictable exchange rates with other currencies.
4
votes
What would be the likely economic consequences of the "trillion dollar coin" idea to elimina...
Quite obviously, the act of creating and depositing the coin can't possibly impact anything of economic interest (except for creating an imperceptibly small increase in demand for platinum and hence a …
- 1,563
16
votes
Is zero inflation desirable?
Money is produced at zero social cost but held at a positive private cost (because to hold money you must forgo holding other assets). Therefore there is a positive externality from holding money, wh …
- 1,563