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Money monetary policy

Contraction in money supply will help in controlling inflation through


reducing aggregate demand. Secondly, the imports of goods will increase
aggregate supply of goods in the economy which will tend to lower prices.
"Stable money" means money with a stable value. ... However, their value
remains the same. This wild change in "purchasing power" doesn't bother
anyone, because they understand instinctively that the value of their money
is stable.
An increase in the supply of money typically lowers interest rates, which in
turn, generates more investment and puts more money in the hands of
consumers, thereby stimulating spending. Businesses respond by ordering
more raw materials and increasing production.
If there is an increase or growth or stability in money then it means the
more production of raw materials economy can give. Just like today we all
know pandemic is happening right now so as of the moment there is no
stability of money some demand and supply are decreasing.

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