Journal Article

Monetary policy and real economic growth


Abstract: An examination of the connections between monetary policy changes, shifts in aggregate spending, and adjustments to production, showing that although a central bank may periodically exploit the connection between short-term monetary expansions and real economic growth, frequent attempts may ultimately distort the allocation of resources from productive uses to protective enterprises and result in proportionally higher inflation.

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 1996

Issue: Dec

Order Number: 1