Question

What type of monetary policy was implemented during 2018?
How do you know this?
Please explain your answer.

Answer 1

Answer - In the year 2018 , in the month nearby May , the contractionary monetary policy was introduced by the fed. This policy aimed at maintaining the stable prices in the economy and also sustain the level of employment. It targeted the inflation rate of 2 %.

As the result of this policy , the fed increased the federal funds rate from 1.75 % to 2 % . This is the form of contractionary step. These records have beem shown by the monetary policy report of the Federal Reserve Beaureu.