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CHAPTER 15

CHAPTER 15. THE DYNAMICS OF INFLATION AND UNEMPLOYMENT. PRIME RATE. Interest rate charged on short-term loans by banks to their best customers. MONEY IS NEUTRAL. If the Federal Reserve increases the money supply by 5%, there will be a 5% inflation

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Chapter 16

Chapter 16. The Conduct of Monetary Policy: Strategy and Tactics. Price stability : policy makers throughout the world Have become increasingly aware of the social & economic costs of inflation Are more concerned with maintaining a stable price level as a goal of economic policy.

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Paul volker - PowerPoint PPT Presentation

CHAPTER 15

Chapter 16