Q&A: How does controlling the money supply help reduce inflation? What is inflation/inflation rates?
Question by John: How does controlling the money supply help reduce inflation? What is inflation/inflation rates?
I am writing a research paper about Reagan and he used a economic policy called “trickle down economics” or Reagonomics that involved contolling the money supply.
-How did this help the economy?
-What is inflation?
-What are inflation rates?
Best answer:
Answer by Just did it!
reagonomics:
http://en.wikipedia.org/wiki/Reagonomics
inflation:
http://en.wikipedia.org/wiki/Inflation
controlling money supply:
http://en.wikipedia.org/wiki/Inflation#Monetary_policy
What do you think? Answer below!
Regardless of absurd rhetoric..what I like about the Fed approach (unlike UK) is the commitment to growth even at expense of inflation.. – by EdMatts (Ed Matts)
Tags: controlling, Help, Inflation, inflation/inflation, Money, Rates, reduce, supply
January 26th, 2012 at 3:21 am
Dude, Reaganomics and monetary policy are completely separate. Reagan set out to lower taxes and thus give business people more money to spend, creating expansions and more jobs thus “trickling down” to the lower echelons of economic society. Monetary policy has to do with monitoring the inflation rates that are set by the Federal Reserve bank and (thankfully) are not subject to public opinion. This attempt to give our economy shock absorbers, but in practice is thought to be a leading cause of some of our current economic hardships.