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They can use the open market operations, discount rates and bank reserve requirements. This will allow the central bank to directly or indirectly influencing both the short term and long term interest rates.
I will discuss how the monetary policy can help to minimize the impact
Inflation
In economics, inflation or price inflation refers to a general rise in the level of prices of goods and services over a period of time. The term "inflation" originally referred to increases in the money supply.
As defined earlier, inflation will happen when there is a surplus of money supply floating in the country...
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Common topics in this essay:
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