Question

how does the monetary policy is going to affect a decisions that we have to make for our economy in our current time.

Answer 1

At the current time whole world is trouble due to the corona virus or Covid 19 and in mostly country there are lockdown situation so all the sector like automobile sector, transport sector and so many has no production or very few production and because of this economy rate is very slow and can say that it is the great recession in the world.

Every country first priority is to fight war against the Covid 19 after this world face great challenge to improve economy.

To improve the economy monetary policy can play great role .

The task of the monetary policy is to provide liquidity to the economy where a supply shock and interest rate should be lower so that money supply increases in the market and if the money supply increases then demand also increases and so production increases .