Monetary policy

Hello traders :44:

I have just finished this chapter in the school[B] 411 on Monetary Policy[/B]

But I really don’t understand the differencies between [I][B]Expansionary monetary policy[/B][/I] and [I][B]Accommodative monetary policy[/B][/I]. And [I][B]Restrictive monetary policy[/B][/I] and [I][B]Tight monetary policy[/B][/I].

For me it sounds like [I][B]Expansionary monetary policy[/B][/I] and [I][B]Accommodative monetary policy[/B][/I] are doing the same job?

Expansionary monetary policy, on the other hand, expands or increases the money supply, or decreases the interest rate.

Accommodative monetary policy aims to create economic growth by lowering the interest rate, whereas tight monetary policy is set to reduce inflation or restrain economic growth by raising interest rates.

And [I][B]Restrictive monetary policy[/B][/I] and [I][B]Tight monetary policy[/B][/I] are doing the same job?

Contractionary or restrictive monetary policy takes place if it reduces the size of the money supply. It can also occur with the raising of interest rates.

tight monetary policy is set to reduce inflation or restrain economic growth by raising interest rates.

Really hope someone would like to “cut” it out for me :slight_smile:

Yep you got it right, expansionary and accommodative (also loose or easy monetary policy) are the same things while restrictive and tight monetary policy are also the same.

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Thanks a lot PipDiddy. My consciousness is a lot more calm now.