Types of Monetary Policy
Definition: The Monetary Policy is a programme of action undertaken by the central banks and other regulatory bodies to control and regulate the money supply to the public and a flow of…
Instruments of Monetary Policy
Definition: The Monetary Policy is a process whereby the monetary authority, generally the central bank controls or regulate the money supply in the economy. The central bank uses several instruments of monetary…
Monetary Measures to Control Inflation
Definition: A moderate rate of inflation is considered desirable for the economy, and it varies from country to country and from time to time. As the inflation crosses the desirable…
Cyclical Unemployment
Definition: The Cyclical Unemployment refers to the change in the employment rate due to the change in the economic cycle, such as recession and inflation. Simply, the change in employment due to…
Hard Landing
Definition: The Hard Landing is the economic condition, wherein the economy moves sharply from the high growth period to the low growth due to the change in the monetary policy. In other…
Phases of Business Cycle
Definition: The Business Cycle refers to the ups and downs in the economic activities that the economy experiences over a period of time. Generally, the business cycle is the upward and downward…
Hicksian of Trade Cycle
Definition: Hicksian Theory of Trade Cycle was proposed by Hicks, who considered Samuelson’s multiplier-accelerator interaction theory and Harrod-Domar growth model in combination to explain his theory of the trade cycle. According…
Business Cycle
Definition: The Business Cycle refers to the periodic boom and slump in the economic activities reflected by the fluctuations in aggregate economic magnitudes which includes total production, employment, investment, bank credits, wages,…
Pure Monetary Theory
Definition: The Pure Monetary Theory was proposed by Hawtrey, according to him the changes in the money flows in the economy cause the fluctuations in the level of economic activities. Thus, this…
Schumpeter’s Theory of Innovation
Definition: Schumpeter’s Theory of Innovation is in line with the other investment theories of the business cycle, which asserts that the change in investment accompanied by monetary expansion are the major…
