1. The state of the UK economy 2003
Monetary Policy refers to the attempts to manipulate the rate of interest or money supply in order to bring about changes in the economy. ... Their reason for doing this is due to the increase in consumer spending which has resulted in an increase in prices, i.e. house prices. ... Therefore, in order to prevent inflation occurring, the Government need to encourage consumer saving and reduce spending, resulting in a decrease in the amount of money in the economy. ... This therefore generates more money for the economy. ... Since that time it has increased in value against the US Dollar, to ...
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