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Summary: Expansionary Monetary Policy

Summary: Expansionary Monetary Policy

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As our economy goes deeper in debt daily, our economy must implement a monetary policy that will increase economic stability. It is vital for our federal reserve to analyze the state of our economy and determine a policy that will better our nation. The most appropriate type of monetary policy for the U.S. economy in 2016, is an expansionary monetary policy. A monetary policy is defined as a central banks changing of the money supply to influence interest rates and assist in the economy in achieving price-level stability, full employment, and economic growth (Brue, Flynn, & McConnell, 2015).
Expansionary Monetary Policy is the federal reserve system actions to increase the money supply, lower interest rates, and expand the real GDP (Brue,

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