CHAPTER5Monetary Theory and PolicyChapter ObjectivesnLearn the well-known theories of monetary policynReview the tradeoffs involved in monetary policynLearn how analysts monitor and forecast Feds monetary policyMonetary PoliciesnHow does money affect the real economy?nHow does varying money supply growth impact spending?nHow does monetary policy in the financial sector impact real economic sector investment and spending?Keynesian TheorynDeveloped by John Maynard Keynes and his studentsnInitially
