Level 1 : economics : limitations of monetary policy

mehak.officiallink
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Joined: Sat Mar 08, 2014 6:59 am

Level 1 : economics : limitations of monetary policy

Postby mehak.officiallink » Sun Nov 16, 2014 2:41 pm

Who are bond market vigilantes ? How do they reflect problem in the monetary transmission mechanism ?

edupristine
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Level 1 : economics : limitations of monetary policy

Postby edupristine » Mon Dec 01, 2014 10:44 am

They are investors in Bond market who protest the government policies by selling off their bond and refuse to buy back. When they perceive the government is over- spending or the policy to be inflationary.
And in transmission mechanism MPC change the official interest rate that will affect the economic environment of country.


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