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Monetary Policy

Monetary Policy

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    Monetary Policy Options

    Goose continues, "Okay, so to finish up the 15 minutes a year economic lecture, these are the things you have to keep in mind." And he keys a powerpoint on his monitor:

    To Fight Recession:

    • Lower interest rates 
    • Lower reserve requirements
    • Buy securities

    To Fight Inflation:

    • Raise interest rates 
    • Raise reserve requirements
    • Sell securities

    "And they are sensitive to a host of data from all over  For The Seven, you will almost certainly have a question or three on...

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