Question

Can you tell me some monetary policies for an economy that is from recesión to recovery for this sector

Manufactory

Answer 1

Monetary policies for manufacturing sectors from recession to recovery are as follows-

1.changes in the interest rate related to the manufacturing sector will help the companies in acquiring the loans and it will also affect the payments associated with the loan.

2. Change in inflation rate would help the manufacturing sector to produce more as when there would be a higher inflation the demand would be on the higher side.

3. When there is a higher money flow into the economy the central banks of country will be inclined to introduce quantitative tightening policy so that would lead to a shrinkage of demand.

4. Monetary policies are also impactful in overall cost of production and supply chain as they decide the funds rate as well as money supply into the overall economy.