Guido1's definitions
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
Get the monetary policymug. Jeremy's little brother carries a condomminium in his wallet, ha, ha.
by Guido1 March 12, 2008
Get the condomminiummug. A dingledorf is someone of supposed average intelligence, but makes incredibly brainless misjudgments. They are the kind of people that even the Pope could strangle with his bare hands. They make you grab you head and scream for murder. They will test you to your limits of humanity.
Oh dude, I cannot believe it. the fucking dingledorf drove off and left his wife and kids in the middle of the desert.
by Guido1 March 3, 2008
Get the dingledorfmug. by Guido1 March 7, 2008
Get the atacolipsmug. When you told me that my BFF, Derek married my little brother, Kegan stationed at Camp Lejeune: on base, by a Chaplin I was rofgfa!
by Guido1 January 27, 2012
Get the rofgfamug. When you lose millions of dollars for your company, then expect them back in the form of a huge bonus for yourself.
by Guido1 March 21, 2009
Get the bogus bonusmug. The ability of the body to "burn" glucose and exhale carbon dioxide. This process includes lung function, cardiac efficiency, vascular tone, and cellular metabolism.
by Guido1 March 6, 2008
Get the oxygen assimilationmug.