The national debt is the total amount of money owed by the central government. It is important for a country to grow its economy and, at the same time, reduce its national debt. Many believe that government debt can cause…

Monetary policy is used in the stabilization of prices and inflation control. However, monetary policy has quite a number of shortcomings and, as such, usually does not reach expectations. These shortcomings are discussed below.

Contractionary and expansionary policies involve modification of the level of money supply in an economy. An expansionary policy increases the supply of money in an economy. On the other hand, a contractionary policy decreases the supply of a country’s currency.

The monetary transmission mechanism is the process where general economic conditions and asset prices are affected due to the monetary policy decisions. It occurs through interest rate channels that influence the costs of borrowings, the levels of investments, and aggregate…