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(2) Intelligent management of regulation of the money supply (monetary policy). This paper is primarily focus on the monetary system in Macroeconomic and the paper will identified the tools that used by the Federal Reserve to control the money supply, Macroeconomic Factors, and the monetary policy combinations that best achieve a balance between economic growth, low inflation, and a reasonable rate of unemployment.
How money is created and what is the Money Supply?
According to Schwartz (2002), the definition of money has varied, most commonly silver or gold, served as money. Later when paper money and checkable deposits were introduced, they were convertible into commodity money...
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