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:
“There is no legislation—I care not what it is—tariff, railroads, corporations, or of a general political character, that all equals in importance the putting of our banking and currency system on the sound basis proposed in the National Monetary Commission plan.”
—William Howard Taft (1857–1930)
“We are apt to say that a foreign policy is successful only when the country, or at any rate the governing class, is united behind it. In reality, every line of policy is repudiated by a section, often by an influential section, of the country concerned. A foreign minister who waited until everyone agreed with him would have no foreign policy at all.”
—A.J.P. (Alan John Percivale)
“One forgets too easily the difference between a man and his image, and that there is none between the sound of his voice on the screen and in real life.”
—Robert Bresson (b. 1907)
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)