The government has many roles and this is one. I feel that the governments role in the Monetary Policy is also good for helping the economy grow. Its one of many ways that the US Government attempts to control the economy. With the central bank, regulators determine the size and rate of growth of the money. When the amount is changed, it helps the economy. If money grows to fast, inflation will increase, but if the money supply is slowed, the economy will slow also. Thats where the Monetary Policy helps control the growth so the economy will not slow down. Without it, interest rates and the amount of money might get out of control. So the government has had a positive impact on the Monetary Policy with helping the American economy
The government has many roles and this is one. I feel that the governments role in the Monetary Policy is also good for helping the economy grow. Its one of many ways that the US Government attempts to control the economy. With the central bank, regulators determine the size and rate of growth of the money. When the amount is changed, it helps the economy. If money grows to fast, inflation will increase, but if the money supply is slowed, the economy will slow also. Thats where the Monetary Policy helps control the growth so the economy will not slow down. Without it, interest rates and the amount of money might get out of control. So the government has had a positive impact on the Monetary Policy with helping the American economy