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Externalities and government failure

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Fiscal policy: Should the government help low-income families get a healthy start?

Monetary policy

In this second centrespread about macroeconomic policy, Peter Smith highlights the key aspects of monetary policy

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■ Monetary policy is the use of monetary variables such as interest rates or money supply to influence the macroeconomy.

■ Monetary policy has been the main approach used to influence the economy since the mid-1970s.

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Previous

Externalities and government failure

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Fiscal policy: Should the government help low-income families get a healthy start?

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