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)
“In considering the policy to be adopted for suppressing the insurrection, I have been anxious and careful that the inevitable conflict for this purpose shall not degenerate into a violent and remorseless revolutionary struggle.”
—Abraham Lincoln (1809–1865)
“The population question is the real riddle of the sphinx, to which no political Oedipus has as yet found the answer. In view of the ravages of the terrible monster over-multiplication, all other riddle sink into insignificance.”
—Thomas Henry Huxley (1825–95)
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)