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Monetary Policy

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A Levels Economics (Macroeconomics) Mind Map on Monetary Policy, created by Kati Christova on 11/03/2014.
Kati Christova
Mind Map by Kati Christova, updated more than 1 year ago
Kati Christova
Created by Kati Christova almost 11 years ago
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Resource summary

Monetary Policy
  1. Monetary policy is ineffective when consumers are willing to hold large quantities of money rather than spend them even when interest rates are very low
    1. Practical application - inflation targeting
      1. Diagram
        1. How MPC operates, factors they consider
          1. Problems in determining the magnitude of the effects of monetary policy
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