Does the Credit Crunch make monetary policy ineffective, is increased Gov spending the only alternative?
I'm sure we are all aware of the current economic "crisis", thanks in no small part to media sensationalism. The fact is that we are now in a recession. The Government appear unsure of a specific plan of how to escape this situation. My question is does the credit crunch mean that monetary policy, namely exchange rates and interest rates, are now ineffective? And if so is increased government spending the only feasible way for the government to bring us out of a recession?
Asked By: Party_Beast - 6/19/2009
Best Answer - Chosen by Asker
I wouldn't say monetary policy is ineffective at all. If you narrowly of monetary policy as just having to do with the setting of interest rates, then that line of thinking would be closer to the truth. It is sometimes stated by economists that monetary policy is good at combating inflation but not very effective at... More
Answered By: Big Mac - 6/19/2009
Additional Answers (1)
I'd agree that the credit crunch certainly makes interest rates less effective, but also the fact that they are so low means there is nothing more that they can do. I don't think exchange rates would be lowered as that would hurt american consumers and be politically unpopular. Raising the exchange rate would hurt GDP... More
Answered By: esp.eclipser - 6/19/2009
Over 483 Local Jobs Now Hiring In Your Area. $18-$87/Hr - Apply Today!
Find job openings in your area. Apply for open job positions today.
(89) Local Jobs Paying $19-$97 Per Hour- Available Today. Apply Now!
$21/hr Start, Avg Pay $72K/yr Check Our Map of the 1700 Openings.
Other Career Questions
What jobs are there in the business field that are night jobs? Places and job titles please. Im have a BA in Business Admin and looking for a night job, already have a morning/day job.
Enumerate these jobs Say, patent application writting. patent application writing. In a company, what jobs are needed to keep confidential?
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.