CH14 - 2009-11-2 Monetary Policy 1 Learning Objective 14.1...

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2009-11-2 1 Monetary Policy 1 Learning Objective 14.1 Monetary policy The actions the central bank takes to manage the money supply and interest rates to pursue its economic objectives rates to pursue its economic objectives. 1 Price stability The Goals of Monetary Policy In USA, the Fed has set four monetary policy goals that are intended to promote a well-functioning economy: 2 High employment 3 Economic growth 4 Stability of financial markets and institutions 2
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