Monetary policy

Monetary policy

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  • Oh no, I'm losing my job !
  • Thanks for letting us barrow money 
  • Yay, we got to kep our jobs !
  • I work at a hospital and its closing down because of hyperinflation. Due to the hyperinflation in the economy the hospital cannot afford equipment. This causes the hospital to shut down due to the prices of the equipment.
  • For the hospital to stay in business the federal reserve has to use easy money policy. Using this policy it can put money back into circulation. The hospital can barrow money from the bank since the rate goes down the hospital can stay in business.
  • Ever since this policy was used myself and others got to keep our jobs. The hyperinflation has decreased. The hospital has gone back in busness
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