Unit 3.5 · Demand Management (Monetary Policy)
Goals of Monetary Policy
AO2
Syllabus Requirement
Includes inflation targeting, low unemployment, reducing business cycle fluctuations, supporting long-term growth, and maintaining external balance.
Assessment Objectives
AO2Application and Analysis
Summary
Monetary policy aims to achieve several key objectives, including maintaining low and stable inflation, reducing unemployment, minimizing business cycle fluctuations, promoting long-term economic stability, and ensuring a balanced external trade position. These goals are important for fostering a healthy economy and supporting sustainable growth.