Concept of education

Monetary policy:“Monetary policy is the process by which the monetary authority of an country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency”.Expansive, low interest rates, cheap money. If the money flows towards the economic agents with a low cost, governments can boost C and I. However, this does not always work, in the current crisis. Companies would not borrow because there was a shrinking demand - they didn’t want more facilities! - and Consumers would not buy because of the high unemployment and uncertainty.

üFiscal Policy:

Increase on G, multiplying effect, somehow forces consumption. Governments can fund big projects to boost the economy. Keynesianism. Furthermore, governments ensure the supply of goods and services that markets fail to provide effectively (health, education…), and can ensure productivity and social stability. Equality as a growth factor.

üEconomic Policy.

üInflation/Deflation:

How does inflation affect GDP? Why should we worry?

 - Salaries losing purchasing power

 - Increased costs for companies that may not be able to pass it on their