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Understanding Monetary Policy

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I need an in depth understanding of monetary policy.

What are the advantages and disadvantages? Is there any limitations? How can congress or the president help the nation? Do we need monetary in the country?

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Solution Summary

This solution discusses monetary policy.

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Monetary policy is a way for the government to stabilize the economy in many circumstances.

Some of the advantages include:
1. Little interference with the market
2. Flexible with frequent meetings of the Federal Open Market Committee.
3. Sheltered from daily political pressures. The policy making is spread out through the system so that it is concentrated in one area and should not fall prey to corruptness by one entity acting upon it.

Disadvantages:
1. Less control as technology makes it easier to go from money assets to other types of assets.
2. Unpredictable spending ...

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