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Explain the monetary policy.

      

Explain the monetary policy.

  

Answers


Kavungya
It is one of the public interventionist measures aimed at influencing the level and pattern of economic activity so as to achieve certain desired goals.
It covers all the actions by the Central Bank and Government which influences the quantity, cost and availability of money and credit in the economy specifically monetary policy works on two principle economic variables, Aggregate supply of money in the economy, And Level of interest rates.
Whereas monetarism is a doctrine it holds that in the monetary policy is the determinant of aggregate demand. Keynes holds that in the short run fiscal policy is important and that monetary policy matters only in as far as it affects fiscal variables. Presently in Kenya Central Bank Kenya carries out the technical work of formulating and executing the monetary policy.
Kavungya answered the question on March 26, 2019 at 06:00


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