Question

what are the advantages and disadvantages of monetary strategy in central bank of kenya

Answer 1

Advantages -

1. Monetary policy decides the possibility of investment coming and customer spending. If monetary policy is customer centric then more business will funds from banks.

2. It enhances the tranparency that makes customer confident that bank are working as per the momnetary policy issued by the central bank of kenya.

Disadvatages -

1. At the times of low performance of recession it is not complusaory that monetary poilcy can mark recovery.

2. Its implementation takes times it is not like fiscal policy whoes result can been seen immediately. Therefore it takes in implementation.