Monetary Policy and The Real Economy
As noted above, the relationship between monetary policy and the real economy is uncertain. It is important to note that contractionary monetary policy should not be confused with economic contraction (the latter being a reduction in economic output in the real economy).
Read more about this topic: Contractionary Monetary Policy
Famous quotes containing the words monetary, policy, real and/or economy:
“In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.”
—Ezra Pound (1885–1972)
“A policy is a temporary creed liable to be changed, but while it holds good it has got to be pursued with apostolic zeal.”
—Mohandas K. Gandhi (1869–1948)
“Have you no beginning and end? Which heart is
the real one? Which eye the seer?”
—Anne Sexton (1928–1974)
“The basis of political economy is non-interference. The only safe rule is found in the self-adjusting meter of demand and supply. Do not legislate. Meddle, and you snap the sinews with your sumptuary laws.”
—Ralph Waldo Emerson (1803–1882)