UNEMPLOYMENT(摩擦性失业).pptVIP

Unit 14 Goals of Monetary Policy I. What is Monetary Policy? Monetary policy is the central bank’s efforts to regulate the economy by managing the supply and cost of money and credit. It usually has four main goals: maximum employment, a stable price level, maximum and sustainable economic growth, balance in international payments. II. Four Goals of Monetary Policy a. Maximum Employment a) When the economy operates below its capacity, there are some idle resources and workers, which results in unemployment and lower GDP. In order to combat such a situation, the central bank increase