Discuss what are the impacts of monetary policies on economic critical economic indicators, such as inflation, interest rates, and whole employment level?
What are the impacts of monetary policies on economic critical economic indicators
What are the impacts of monetary policies on economic critical economic indicators, such as inflation, interest rates, and whole employment level?
the file “proposal” is the original proposal and now you should write a new proposal and with the second research question.
the pictures are the feedback of the original proposal
for this preliminary analysis need include a regression between the independent variable and dependent variable
The Determinants of Growth
Monetary policy’s ability to affect real economic activity — when monetary policy is being reasonably well-executed — can be quite limited and is almost always short-lived. In the standard models used in policy analysis, monetary policy’s effects on the real economy generally derive from frictions that impede the rapid adjustment of the overall average level of prices, such as the fact that it takes time for households and firms to adjust their behavior in response to changes in the stance of monetary policy. Such frictions are, almost always, short-run phenomena that generate transitory deviations in real activity, and their empirical significance is a matter of ongoing research and debate.
What does drive indicators of real activity, such as how many people are working or how much they are earning? There is a consensus among economists that growth in average real income depends critically on the rate of technological change. Growth occurs not only because we have more people working or more machines (or, in economic terms, more labor and more capital), but also because technological advances make existing workers more productive.
Such advances might be entirely new types of machines, such as the steam engine or the cell phone, or they might be new techniques for making existing products. In addition, a large body of research suggests that the accumulated skills and expertise embodied in human capital are the keys to making such advances. Countries with more initial human capital appear to have a greater capacity to develop new technologies and to copy or adapt technologies developed in other countries.
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