Learning guides - English - Page 4

What is an expansive monetary policy? An expansive monetary policy is activity by the central bank to stimulate economic activity in a country or geographical area. This type of policy is adopted…

What is unconventional monetary policy? Unconventional monetary policy is a set of measures taken by a central bank to bring an end to an exceptional economic situation. Central banks use these…

What is a restrictive monetary policy? A restrictive monetary policy is a set of central bank measures aimed at combating an inflation rate that is too high. The objective is therefore to stop…

What is monetary policy? Monetary policy is the action taken by a central bank to influence the money supply level of a country or geographical area. In the European Union, the ECB (European…

What is a policy rate? A policy rate is a short-term reference rate set by a central bank. In reality, there are three different policy rates. The main one, and the one that everyone talks about…

What is a liquidity trap? A liquidity trap is an economic situation in which the central bank is unable to generate inflation despite monetary stimulus. A liquidity trap marks the failure of…

Unlike the FED’s monetary policy, we are going to study the FED’s fiscal policy in a generic way, as its effects are mechanically comparable regardless of the legislation. The budget can only…