Review Coursework for Rules for monetary policy questions

Review for Rules for financial policy questions - Coursework ExampleHowever, the excessively high train of money circulating in the deliverance induces inflation. Conversely, the excessively low level of money circulating in the economy kills economic cognitive operation and induces deflation. Since the association between the money supply and other economic indicators such as the gross domestic product and prices level or inflation has become irregular, the money proceeds based policies piddle been unsuccessful (What is money supply? Is it important?, 2014).Adopting rules for the financial policy is like suggesting that the economy regulators clearly understand all the variables within the economy and how they affect one another. The center stage for the formulations of rules for monetary policy is the interest rates and the economic output. It is currently clear that the performance of an economy is influenced by the performance of other institutions like the financial mark et, the capital market, and the financial institutions. These players add to the list of factors to be considered when formulating rules for monetary policy. The regulators have not been able to understand fully how the financial markets affect the economy, thus, controlling an unclear situation could act damages. Therefore, the policy makers are reluctant to adopt rules for monetary policy (Swanson, 2014).Swanson, A. (2014). What the US could gain and lose from monetary policy rules. Retrieved from