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<\/a> <\/a> Interest Rates<\/a> by 401k (2012), CC-BY-SA<\/a>.[\/caption]\r\nIn this module we learned about the second important tool by which the government can influence the macro economy, that is, monetary policy.\u00a0We explored the role of central banks. like the U.S. Federal Reserve, in conducting monetary policy, including:<\/p>\r\n\r\n
<\/a><\/p>\nInterest Rates<\/a> by 401k (2012), CC-BY-SA<\/a>.<\/p>\n<\/div>\n In this module we learned about the second important tool by which the government can influence the macro economy, that is, monetary policy.\u00a0We explored the role of central banks. like the U.S. Federal Reserve, in conducting monetary policy, including:<\/p>\n In short, we learned how monetary policy is supposed to work, but also how the Fed has improvised in recent years to make monetary policy work when traditional methods were ineffective. In the next module, we will continue this theme by exploring real world complications that prevent fiscal and monetary policy working as easily as one might wish, and also how policy makers deal with those complications.<\/p>\n\n\t\t\t \n
Candela Citations<\/h3>\n\t\t\t\t\t