How do the economic signals help in determining the monetary policies?

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Marie Medina
Answered 2 months, 1 week ago
<p id="isPasted">Economic signals, like GDP growth, inflation rates, and unemployment, inform central banks about the state of the economy, guiding their decisions on monetary policy. These signals help determine whether to tighten or loosen monetary policy, which involves controlling the money supply and interest rates.&nbsp;</p><p><br></p>