Monetary policy is a macroeconomic policy regulated by the central bank of the country to control the inflation. These monetary policies are implemented by the government to manage the demand and supply of the money in the economy. The inflation of a country is one of the major factors which determine the current situation of the country.
The assignments which are based on the monetary policy require the analysis of the country. The demand of the assignment is generally to evaluate the current monetary policy of the country and compare the situation with other countries. These monetary policy assignments also demand to suggest a better monetary policy which can be implemented according to the economic situation. These requirements increase the difficulty of the assignment and thereby students seek economics assignment help, especially monetary policy assignment help.
The aim of expansionary policy is to increase the aggregate demand in the country so that the total GDP (gross domestic product) of the country can be increased. It is also known as loosening of monetary policy. Under this type of policy, the government decreases the discount rate, buy the government securities from the market or cut the interest rate for the government. This type of monetary policy should be implemented when the government aims at increasing the aggregate demand. The effect expansionary monetary policy is that lower interest rate increases the cash in hand for the citizens and also decreases the cost of loan. This result in increase of disposable income and thereby consumption. This finally results in increase of the aggregate demand. Monetary policy assignments are a large combination of topics of expansionary monetary policy and its subparts.
The aim of the contractionary monetary policy is to decrease the growth of the economy. This policy is implemented by the government when the economy is at peak and the hyperinflation is one of the threats to economy. The contractionary monetary policy can be put into operations either by increasing the interest rate or by selling the government securities in the market. Both the steps decrease the money supply in the economy and result in the slow growth. The increased interest rate increases the cost of borrowing and decreases the cash in hand for the citizens. This results in decrease of the investments and consumption by the country. In Contractionary monetary policy, the major monetary policy assignment help occurs due to complex inter-relationships of the topics.
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