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L1 19 Monetary and Fiscal Policy > s explain the interaction of monetary and fiscal policy. > Flashcards

s explain the interaction of monetary and fiscal policy. Flashcards

L1 19 Monetary and Fiscal Policy (20 decks)

Monetary and Fiscal Policy

a compare monetary and fiscal policy;

b describe functions and definitions of money;

c explain the money creation process;

d describe theories of the demand for and supply of money;

e describe the Fisher effect;

f describe roles and objectives of central banks;

g contrast the costs of expected and unexpected inflation;

h describe tools used to implement monetary policy;

i describe qualities of effective central banks;

j explain the relationships between monetary policy and economic growth, inflation, interest, and exchange rates;

k contrast the use of inflation, interest rate, and exchange rate targeting by central banks;

l determine whether a monetary policy is expansionary or contractionary;

m describe limitations of monetary policy;

n describe roles and objectives of fiscal policy;

o describe tools of fiscal policy, including their advantages and disadvantages;

p describe the arguments about whether the size of a national debt relative to GDP matters;

q explain the implementation of fiscal policy and difficulties of implementation;

r determine whether a fiscal policy is expansionary or contractionary;

s explain the interaction of monetary and fiscal policy.

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