#15.01 -- Discretionary Monetary Policy (3.11)

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Chapter 15 -- Money Supply

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Video #15.01 Discretionary Monetary Policy

Discretionary Monetary Policy:

Discretionary Monetary Policy Describe and graphically illustrate how discretionary monetary policy can be used to regulate the economy

Monetary Policy:

Monetary Policy Expansionary Monetary Policy: The Fed increases money supply to address a recessionary gap. Contractionary Monetary Policy: The Fed decreases money supply to address an inflationary gap.

Monetary Policy and a Recessionary Gap:

Monetary Policy and a Recessionary Gap

Monetary Policy and an Inflationary Gap:

Monetary Policy and an Inflationary Gap

Discretionary Monetary Policy:

Discretionary Monetary Policy Describe and graphically illustrate how discretionary monetary policy can be used to regulate the economy

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