monetary policy the problems concerning the
Monetary policy
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policy conflictsin their attempts to achieve the policy objectives governments often face what are called conflict of objectives these arise
difficulties in using fiscal policythere are several problems involved in implementing fiscal policy they includetheoretical problemsmonetarists
the neo-classical viewthe neo-classical view is that market forces are the best directors of the economy positive attempts by the government it
problems of prices and incomes policyi confrontationthe imposition of the prices and incomes policy voluntary or statutory risks the possibility of
monetary policy the problems concerning the ability of monetary policy to influence the economy as for instance the doubts about the ability of lower
interest rates decreasing the rate of interest may not encourage investment but increasing the interest rate tends to lock up liquidity in the
liquidity and the multiple contraction of depositsmany of the instruments of monetary policy depend upon limiting liquidity which has a multiple
meaningthe word inflation has at least four meanings a persistent rise in the general level of prices or alternatively a persistent falls in the
measurement of inflationthe rate of inflation is measured using the retail price index a retail price index aims to measure the change in the
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