Monetary Policy Exchange Rates

Implications of a large country engaging in loose monetary policy for exchange rates The report takes into consideration the different cases of monetary policies in some of the nations of the world and tries to analyze the policy measures in light of the theories.In any economy, the monetary policy is implemented on the decision of the Central Bank of the country. On the other hand, the Fiscal policy is implemented by the government of the country. While the implementation of the fiscal policy takes place through the adjustment of the government expenditure, taxes, and the subsidies, the monetary policy takes place through the adjustments of the interest rates. The rates of interest are the main policy tools that the central bank uses for the changes in the policy measures. The monetary policy is based on the liquidity preference theory. The people in a particular economy would be adjusting their spending depending on the rate of interest that is prevailing in the markets. When the central bank wants to reduce the liquidity in the economy, it would increase the rate of interests. With the banks paying a higher return on the bonds, people would start parking their money in the banks for the expectation of the higher returns from the bonds. Thus they would spend less in the present period expecting that they would have more money to spend in the later period. This would lead to a cut in the spending. As a result, the aggregate demand in the economy would decrease. Along with the reduction in the production of the domestic firms, the country would also start importing less. As a result, there would be a favorable condition on the trade balance which in turn would bring more foreign currency in the economy. As a result of this, the value of the domestic currency would appreciate.

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with TermPapersForMe
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 10k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Excellent!!! Thank you.
Customer 452487, September 13th, 2021
On point! Appreciate all the hard work!!
Customer 452483, August 16th, 2021
I appreciate the help.
Customer 452567, March 18th, 2022
Well done! I thank you very much!
Customer 452483, July 9th, 2021
Thank you so much for all of your hard work & help! It’s perfect! Appreciate it!!
Customer 452483, September 11th, 2021
Thank you, great work!
Customer 452483, July 19th, 2021
English 101
Customer 452547, March 22nd, 2022
Healthcare Writing & Communications
Perfect! Thank you for also remembering to highlight the necessary words. Appreciate all of your help and hard work!
Customer 452483, November 7th, 2021
English 101
This writer was very quick with the draft and even faster with the revision! Thank you!
Customer 452603, May 30th, 2022
Introduction to Sociology
Amazing! Thank you so much for your hard work, appreciate it!!
Customer 452483, October 24th, 2021
PERFECT! Thanks a million, you're all awesome!!!!
Customer 452483, July 7th, 2021
Appreciate all of your hard work! Thank you so much!!
Customer 452483, September 14th, 2021
Customer reviews in total
Current satisfaction rate
2 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon TERM15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat