119 definitions by Guido1
The means by which entities, as government agencies, as the Federal Reserve, Department of the Treasury, and institutions as the central bank, control the supply of money (M1, M3). This process includes trading in foreign exchange markets.
Monetary policy can but viewed in its two forms: expansionary and contractionary. Expansionary policy increases the total money supply (liquidity) and is used to fight unemployment or recessionary pressures, mainly by lowering interest rates. Direct cash infusions to struggling private institutions or government rebates to individuals can be used as emergency measures to avoid panic runs on banks as was seen in the 1929 market crash. These measures are very dangerous and are considered highly inflationary and destabilizing to currency exchange rates. Economic theory would indicate that such uncontrolled printing of money, indicates failure of fiscal policy (which refers to government borrowing, spending, and taxation).
Contractionary policy is used to control inflation by raising interest rates. A "perfect storm" scenario would be when a government "should be" using a contractionary policy and resorts to an expansionary policy.
Monetary policy can but viewed in its two forms: expansionary and contractionary. Expansionary policy increases the total money supply (liquidity) and is used to fight unemployment or recessionary pressures, mainly by lowering interest rates. Direct cash infusions to struggling private institutions or government rebates to individuals can be used as emergency measures to avoid panic runs on banks as was seen in the 1929 market crash. These measures are very dangerous and are considered highly inflationary and destabilizing to currency exchange rates. Economic theory would indicate that such uncontrolled printing of money, indicates failure of fiscal policy (which refers to government borrowing, spending, and taxation).
Contractionary policy is used to control inflation by raising interest rates. A "perfect storm" scenario would be when a government "should be" using a contractionary policy and resorts to an expansionary policy.
The world is very critical of the monetary policy of the United States and is punishing it by devaluing its currency.
by Guido1 March 30, 2008
A very good smelling fart of your own creation that you share the aroma with your favorite person while lyao.
by Guido1 September 28, 2011
A coined word hybridizing cyber cybernetics and phil (philo), Greek meaning loving. Basically meaning the love of all cool electronic comunication devices.
by Guido1 March 16, 2008
First person: Dude, do you really like Daniele?
Second person: Are you crazy, we are just friends with privileges.
Second person: Are you crazy, we are just friends with privileges.
by Guido1 March 6, 2008
In the old days of no central heating, a night so cold it took 3 dogs sleeping with you to keep you warm enough.
by Guido1 March 14, 2008
A way to get a point across to someone who you already know has a strong opinion and is likely not even going to listen to what you have to say about a subject matter.
by Guido1 February 16, 2010
Honey, I think that I will take our clunker savings, and build a man cave so I can stay out of your hair when your mom comes over, ok, honey dearest?
by Guido1 August 23, 2009