The Monetary Policy – Restrictive or Expansive?

The monetary policy plays an important role in macroeconomic policy of government. There is a question concerning type of this policy ñ expansive or restrictive (easy or tidy monetary policy). Unfortunately, we have a lot of criteria. Each of them gives us other answer. So due to equitation of Irvin...

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Main Author: Adam Szafarczyk
Format: Article
Language:English
Published: VIZJA University 2007-12-01
Series:Contemporary Economics
Online Access:http://ce.vizja.pl/en/download-pdf/id/30
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author Adam Szafarczyk
author_facet Adam Szafarczyk
author_sort Adam Szafarczyk
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description The monetary policy plays an important role in macroeconomic policy of government. There is a question concerning type of this policy ñ expansive or restrictive (easy or tidy monetary policy). Unfortunately, we have a lot of criteria. Each of them gives us other answer. So due to equitation of Irving Fisher we have dominantly expansive monetary policy. This same situation exists when we use nominal value of rediscount interest rate of central bank. Opposite result appears when we use real value of this interest rate or level of obligatory reserve. Taking under consideration liquidity on money market we know, that level of interest rate is too high.
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spelling doaj-art-da657a1c03e44c68a4d5f52280340c552025-08-20T03:24:25ZengVIZJA UniversityContemporary Economics2084-08452007-12-01141197The Monetary Policy – Restrictive or Expansive?Adam SzafarczykThe monetary policy plays an important role in macroeconomic policy of government. There is a question concerning type of this policy ñ expansive or restrictive (easy or tidy monetary policy). Unfortunately, we have a lot of criteria. Each of them gives us other answer. So due to equitation of Irving Fisher we have dominantly expansive monetary policy. This same situation exists when we use nominal value of rediscount interest rate of central bank. Opposite result appears when we use real value of this interest rate or level of obligatory reserve. Taking under consideration liquidity on money market we know, that level of interest rate is too high.http://ce.vizja.pl/en/download-pdf/id/30
spellingShingle Adam Szafarczyk
The Monetary Policy – Restrictive or Expansive?
Contemporary Economics
title The Monetary Policy – Restrictive or Expansive?
title_full The Monetary Policy – Restrictive or Expansive?
title_fullStr The Monetary Policy – Restrictive or Expansive?
title_full_unstemmed The Monetary Policy – Restrictive or Expansive?
title_short The Monetary Policy – Restrictive or Expansive?
title_sort monetary policy restrictive or expansive
url http://ce.vizja.pl/en/download-pdf/id/30
work_keys_str_mv AT adamszafarczyk themonetarypolicyrestrictiveorexpansive
AT adamszafarczyk monetarypolicyrestrictiveorexpansive