登录查看更多内容

How can monetary policy be used to increase employment in the economy?

由人工智能和领英社区提供技术支持

Monetary policy is one of the tools that governments and central banks use to influence the economy. It involves changing the supply of money and the interest rate to affect the demand for goods and services, inflation, and employment. In this article, you will learn how monetary policy can be used to increase employment in the economy, and what are the benefits and challenges of doing so.

此文章中的业界达人

由社区从 7 条内容中精选。了解更多

Juhi Dhawan

Global Economist | Policy Expert | Investment Strategist
Miguel Cueva, MBA

Gestión de Tesorería | Finanzas Corporativas | Docente Universitario | Contabilidad Gerencial | Control de gestión |…
Francisco Martínez Márquez

Asesor Financiero de inversiones | Experiencia en Banca Privada | Linkedin Top Voice

1 What is monetary policy?

Monetary policy is the process of controlling the amount of money and credit in the economy. The main institution that conducts monetary policy is usually the central bank, which is an independent authority that oversees the banking system and the currency. The central bank can use various instruments to change the money supply and the interest rate, such as buying or selling government bonds, changing the reserve requirements for banks, or setting a target for the overnight lending rate.

添加您的观点

Dr. Dinesh Sharma

CFO/Director Finance and Author
举报内容
Monetary policy, when wielded judiciously, can be a potent tool in fostering employment and steering an economy towards sustainable growth. However, challenges abound, and the evolving nature of the global economic landscape necessitates continual innovation and adaptability. Striking the right balance and employing a mix of conventional and unconventional measures are crucial for central banks as they endeavor to shape economic destinies through the intricate dance of monetary policy.

已翻译

赞

2 How does monetary policy affect employment?

Monetary policy affects employment through its impact on aggregate demand, which is the total spending on goods and services in the economy. When the central bank lowers the interest rate, it makes borrowing cheaper and encourages more spending by consumers and businesses. This increases the demand for goods and services, and stimulates the production and employment of firms. Conversely, when the central bank raises the interest rate, it makes borrowing more expensive and discourages spending. This reduces the demand for goods and services, and slows down the production and employment of firms.

添加您的观点

Hugo V.

Assessor e Consultor Empresarial | Estudante de Economia | Gestor Empresarial | Empresário | Especialista em Vendas | MBA Gest?o de Empresas | MBA em Lideran?a | Empreendedor
举报内容
Uma regra clara é que quanto mais giro, mais movimenta??o de dinheiro em um país, mais oportunidades e recursos surgem. Com o acesso fácil ao dinheiro, seja em empréstimos ou trabalho agregado, maior é o estímulo de consumo e de gastos. Isso é super positivo para um país ser rico e próspero. Países que prestam aten??o a politica monetária e incentiva o giro de capita (consumo, gastos e trabalho) s?o países que tem menos pobreza e melhor qualidade de vida. Logicamente existem muitos outros fatores, mas a politica monetária quando é bem sucedida, influencia muito na economia!

已翻译

赞

3 What are the goals of monetary policy?

The main goals of monetary policy are to maintain price stability and support economic growth. Price stability means keeping inflation low and stable, which preserves the purchasing power of money and reduces uncertainty for economic agents. Economic growth means increasing the output and income of the economy, which improves the living standards and welfare of the population. Employment is closely related to both goals, as it affects the income and consumption of households, and the costs and profits of firms.

添加您的观点

4 How can monetary policy be used to increase employment?

Monetary policy can be used to increase employment by lowering the interest rate and expanding the money supply. This stimulates aggregate demand and creates more jobs in the economy. However, this also increases the risk of inflation, which erodes the value of money and reduces the real income of workers. Therefore, monetary policy has to balance between stimulating employment and controlling inflation, and take into account the lagged and uncertain effects of its actions on the economy.

添加您的观点

Juhi Dhawan

Global Economist | Policy Expert | Investment Strategist
举报内容
The goal of monetary policy is to sustain non-inflationary growth near potential output helping generate maximum employment. Strong monetary policy implementation via a variety of tools such as balance sheet or money market operations, interest rates, and forward guidance are used to execute optimal policy. The goal is to be flexible and adapt when outside shocks are inflicted on the economy such as energy or food price shocks or more recently as seen with supply chain disruptions. Accurately analyzing the stage of the business cycle will allow a central bank to be accommodative, neutral or restrictive in its policy actions, dampening business cycle fluctuations. In turn, this enables companies to have confidence to hire for healthy growth.

已翻译

赞
Miguel Cueva, MBA

Gestión de Tesorería | Finanzas Corporativas | Docente Universitario | Contabilidad Gerencial | Control de gestión | Mentor en Innovación Financiera
举报内容
Según mi experiencia, la economía es una evolución cíclica en la cual existen periodos de bonanza y de depresión. Los Bancos Centrales deben buscar un equilibrio ya que al reducir las tasas de interés, si bien es cierto facilita el acceso a préstamos para personas y empresas lo cual deviene en mayor puestos de trabajo y consumo, también es cierto que si no hay un control y seguimiento adecuado, se puede incurrir en presiones inflacionarias. Se podría decir: El remedio fue peor que la enfermedad.

已翻译

赞

5 What are the benefits of using monetary policy to increase employment?

Using monetary policy to increase employment has several benefits. First, it can help reduce unemployment, which is a source of economic and social problems, such as poverty, inequality, crime, and mental health issues. Second, it can help increase the productive capacity of the economy, by encouraging more investment in physical and human capital, and enhancing innovation and productivity. Third, it can help improve the confidence and expectations of economic agents, by signaling that the central bank is committed to supporting the economy and preventing deflation.

添加您的观点

Miguel Cueva, MBA

Gestión de Tesorería | Finanzas Corporativas | Docente Universitario | Contabilidad Gerencial | Control de gestión | Mentor en Innovación Financiera
举报内容
Según mi experiencia, los beneficios a primera vista son: - Dinamismo de la economía mediante préstamos accesibles. - Dicho crédito puede ir a consumo (mayores compras y para los vendedores se traduce en ventas) o para inversión de capital, lo cual genera puestos de trabajo directos. - Personas con empleo pueden tener el acceso a mejor calidad de vida y mayor confianza de invertir en el futuro (capacitaciones, maestrías, etc). - El dinamismo de la economía genera mayor recaudación tributaria en una sociedad bancarizada y amplitud en su base tributaria, la cual en un mundo ideal debe servir para mejorar las condiciones de mercado de una nación (mejor infraestructura, seguridad, educación, etc).

已翻译

赞

6 What are the challenges of using monetary policy to increase employment?

Using monetary policy to increase employment also has several challenges. First, it can create inflationary pressures, which can harm the economy in the long run, by distorting prices and wages, and reducing the competitiveness and efficiency of firms. Second, it can face the zero lower bound problem, which means that the central bank cannot lower the interest rate below zero, and thus loses its effectiveness in stimulating the economy. Third, it can generate trade-offs and conflicts with other policy objectives, such as fiscal policy, exchange rate policy, and financial stability policy.

添加您的观点

Hugo V.

Assessor e Consultor Empresarial | Estudante de Economia | Gestor Empresarial | Empresário | Especialista em Vendas | MBA Gest?o de Empresas | MBA em Lideran?a | Empreendedor
举报内容
é muito raro ver a infla??o de um país sendo aumentada pelo motivo de gerar empregos. E mesmo tendo o desequilíbrio, a a??o é baixa e pode ser equilibrada facilmente. Agora um país onde n?o tem desenvolvimento industrial e nem comercial, acarretando em pouca empregabilidade, isso sim é um problema grave que impacta na economia e no PIB do país, ou seja, o país perde poder monetário, sofre queda de arrecada??o e espanta grande negócios!

已翻译

赞

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Francisco Martínez Márquez

Asesor Financiero de inversiones | Experiencia en Banca Privada | Linkedin Top Voice
举报内容
Equilibrio entre inflación y empleo con los objetivos de la Pa monetaria. El BCE prioriza la inflación y la FED el empleo, pero ambos vigilan su segundo objetivo y persiguen el compromiso en ese difícil trade-off. No se entiende la política monetaria independientemente de la fiscal. ésta última depende del ejecutivo y su capacidad para legislar, y está sujeta a limitaciones que delegan gran parte de la responsabilidad económica en el Banco Central. Hasta el momento, las acciones de Pa monetaria (tipos de interés y liquidez) para buscar el equilibrio de la economía de BCE y FED (por seguir el ejemplo), han resultado exitosas, aunque no por ello susceptibles de mejorar, para facilitar la estabilidad de precios, y el empleo.

已翻译

赞

Economics

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How can monetary policy be used to increase employment in the economy?

1

2

3

4

5

6

7

1 What is monetary policy?

2 How does monetary policy affect employment?

3 What are the goals of monetary policy?

4 How can monetary policy be used to increase employment?

5 What are the benefits of using monetary policy to increase employment?

6 What are the challenges of using monetary policy to increase employment?

7 Here’s what else to consider

Economics

给文章评分

感谢您的反馈

更多Economics相关文章

更多相关阅读内容

How can monetary policy be used to increase employment in the economy?

1

2

3

4

5

6

7

1 What is monetary policy?

2 How does monetary policy affect employment?

3 What are the goals of monetary policy?

4 How can monetary policy be used to increase employment?

5 What are the benefits of using monetary policy to increase employment?

6 What are the challenges of using monetary policy to increase employment?

7 Here’s what else to consider

Economics

给文章评分

感谢您的反馈

查看其他技能