Monetary Policy within the IS-LM Framework

The majority of economists would admit that

money is powerful and that changes in money

will impact the economy. Monetary theory analyzes

and determines how changes in the supply

of money affect the economy.

This book details the collection of policies

that use monetary tools known as monetary

policy. For example, the main monetary authority

of a country is its central bank. In the United

States it is called the Federal Reserve Bank System

(Fed), which is a federation of 12 Federal

Reserve Banks. The ...