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explain what “leaning against the wind”

explain what “leaning against the wind”

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Answer #1

Soln. "Leaning against the wind" is an economic situation or a monetary policy, in which central banks take appropriate measures to control the inflationary boom or to enhance the growth, when economy is flagging. For example - in june 2005, going by idea of "Leaning against the wind", the president of the European Central Bank, raised interest rates even beyond the level necessary to maintain price stability over the short to medium term,when a potentially detrimental asset price boom is identified.

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