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Wrong Monetary Policy

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Monetary policy is to protect a country or economy (eg EU) action to stabilize prices and ensure economic growth, the correct adjustments, and implementation can ensure economic stability, there are a lot of history since the monetary policy mistakes which led to a banking crisis, the United States monetarist Milton believe fundamentally from financial turmoil monetary policy mistakes, serious reason for the financial crisis is a comprehensive monetary policy mistake led to small-scale financial problems. For example, from 1953, the ROC government began issuing the Fa BI, meaning is the official currency, making China out to precious metals as money circulation system at issue, but due to the outbreak of World War II, the ROC government's military needs a sharp rise, thereby applying the wrong monetary policy such as mass distribution Fa BI, the Republic of China during World War II led to serious domestic inflation, rising prices, economic collapse. So I think that the correct monetary policy is to protect one of economic stability and steady financial market foundation.
Learn monetary policy tools need to first understand what monetary policy, monetary policy by the central banks of each country's currency board or other regulatory commission to determine the size and the money supply, thereby affecting the rate of growth of action. . …show more content…

For the protection of price stability and stable economic development, it is

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