Strengths And Weaknesses Of Monetary Policy
Introduction The success of a countries economy is dependent on several factors. One of which is the monetary policy. The monetary policy can achieve a wide range of goals by simply altering either the supply of money, interest rates, or both. With these two parts of the monetary policy, countries are able to influence their inflation, employment, consumption, and, investments, and more. But it is very difficult to be perfect in all those aspects in the economy with all the different existing viewpoints. This brings one to consider what a successful monetary policy is.
Success, in the case of the monetary policy, can be measured in different ways. It can be measured by looking at the effect of time: focusing on whether the policy gives a short term fix that could result in a long term disaster, or if it works towards a long term solution. It can be measured by looking at how many weaknesses it combats the importance of the weaknesses being combated. Perhaps even the advantages it gives regarding trade and investment of foreign countries. So, if one says that absolute success involves thinking both short and long term, targeting as many important weaknesses as possible, while looking for foreign investors, then one can go on to measuring the success of a particular countries monetary policy. In this study, I will be looking at the extent in which the Swedish government’s monetary policy can be seen as successful. This will be done through investigation of the effects the
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