Blog Post - Accessing The Effects Of Monetary Policy Rates On The Inflation

Introduction

Monetary Policy is the policy which is adopted by the central bank of the country all over the world. The central bank often controls the interest rates on money supply or short term loans. In monetary the economists talk about the money supply and money demand. Inflation is the increase in the general price level of goods and services sold in a country. Inflation reduces the purchasing power of the consumers of a country moreover it also reduces the worth of the currency of the country. Inflation is the quantitative measure of the rate at which the price level of goods and services in a country increases as time passes on. It is the rise in the price level of goods and services at a constant pace in which a unit currency purchases in less quantity buy less than it did in the past few years. The inflation is expressed normally in percentage all over the world.

Purpose of the Study

The purpose of this study is to access the effects of the monetary policy rates on the inflation.

Analysis

Several academic researchers wrote several research papers just for the purpose to examine the impact of the monetary policy rates on the inflation. A recent research study conducted by (Kromtit, 2015) shows that the monetary policy rates have a positive effect on the inflation. The broad money supply put negative effects on the inflation, exchange rate of the country always put negative effects on the inflation and there is a positive relationship exists in between economic growth and inflation. A research study conducted by the professional writers of Prime Assignment in the past few years also proves that there is a show that the monetary policy rates have a positive effect on the inflation. We are providing valuable assignment help online to millions of students studying in various universities across the entire globe at a cheap cost. It really helps the students to get distinctions in the semester by doing fewer efforts in studies.

Conclusion

The research study conducted in the recent past few years shows that there is a positive effect of monetary policy exist on the inflation. By keeping in view of the various research studies conducted since recent past few years it can be concluded that there is a positive effect on monetary policy on inflation.

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