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. Those annoying as hell ads that pop up, pop down, slide in, video blast, float, wiggle, flash, or otherwise drive you fricking crazy while they page freeze or crash your computer while surfing the net.
by Guido1 December 3, 2009
Get the ad botsmug. An expensive wireless computer mouse that does not need a mouse pad or be in contact with any surface. Can be operated in a manner similar to the Wii Nunchuck.
by Guido1 April 6, 2010
Get the air mousemug. A parody on the radio personality, Rush Limbaugh. Often used in reference to a clone of the same. A very negative assault on ultra-right wing views, as represented by infantile narcissism, indulgence, self-centered shallowness, and lack of meaningful dialog.
by Guido1 March 2, 2008
Get the Lush Lamebrainmug. 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
Get the friends with privilegesmug. People who get everything assbackward. The same people that you tell, to put it where the sun doen't shine, and do nothing but mouth crap all day.
Man, all my Redneck friends, just love that Limbaugh guy to death, but I think he has a major intestinal tract inversion.
by Guido1 September 18, 2009
Get the intestinal tract inversionmug.