Question

What is the basic objective of monetary policy? What are the major strengths of monetary policy? Why is monetary policy easier to conduct than fiscal policy?

Answer 1

Answer:

The basic objective of monetary policy is to assist the economy in achieving a full-employment, non-inflationary level of total output.

The major strength of monetary policy is its speed and flexibility

The Monetary policy is easier to conduct than fiscal policy because

monetary policy has a much shorter administrative lag than fiscal policy

Explanation:

The basic ojective, in other words, is to try to have more jobs for people without having to deal with high inflation.

The monetary policy can be fast and flexible in attaining its objectives.

The monetary policy is easier to implement than fiscal policy.