what monetary policies would you use to slow down economic growth?

to avoid the peaks and valleys in the economy what monetary policies would you use

1. tight money, raise bank rate?
2. sell bonds
and whats the 3rd one?

By | 2013-08-25T15:19:03+00:00 August 25th, 2013|Mortgages Home Loans Interest Rate|3 Comments

About the Author:


  1. Snigdha August 25, 2013 at 5:19 PM - Reply

    the third one is to increase the required reserve ratio(which refers to the amt. of non-interest bearing deposits that evry cmmrcial bank has to maintain with the cntrl bnk as a proportion of its total deposits).. this will reduce the money supply in the economy hence will help to slow down the economic growth.

  2. Chris August 25, 2013 at 4:35 PM - Reply

    The are usually listed as
    1. open market operations – sell bonds
    2. raise bank rates (federal funds and discount rates)
    3. raise the reserve requirement.

  3. Anjaree August 25, 2013 at 4:18 PM - Reply

    1 increase fund rate
    2. increase reserve requirement ratio
    3 increase discount rate.

Leave A Comment