“Money Supply” explores the pivotal role of central banks and monetary policy in shaping our economies. It demystifies how these institutions manage the money supply, influencing everything from inflation to job availability. The book emphasizes that while central banks wield considerable influence through tools like interest rates and quantitative easing, their actions are not without limitations and can have unintended consequences. Discover how monetary policy evolved from the gold standard to today's complex systems, and understand the impact on key macroeconomic variables such as GDP growth and investment.
The book progresses by first defining and measuring the money supply, then examining the specific tools central banks use. Following this, it analyzes how monetary policy affects inflation and economic activity. Finally, it presents real-world case studies to draw lessons for policymakers and the public, even touching on modern monetary theory. This approach provides a comprehensive understanding of central banking, empowering readers to critically assess policy decisions and their potential impacts on financial decision-making.
