How Government Monetary Policy Works

The following is a guest post. If you’d like to guest post on the Dividend Ninja, be sure to check out our Guest Posting Guidelines. The monetary policy is controlled by government managed Central Banks. In the U.S., it is called the Federal Reserve or Feds. In Europe, it is called the ECB (European Central Bank). Australians call theirs the Reserve Bank of Australia (RBA) and in most countries it is referred to as the Central Bank. Monetary policy is used to influence the level of interest rates. This in turn influences the investment behavior of firms and individuals, the …

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