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Monetary Intervention

 

Introduction

Monetary intervention probably has the most significant negative impact on economic activity compared to all other forms of intervention. It has a nearly universal affect on economic activity. Not many people, however, discuss the effects of monetary intervention. Do they not understand it? Or, do they not realize it significance?

Monetary Policy

Although the artificial manipulation of the money supply resides in the banking system (the Federal Reserve and commercial banks,) monetary policy still remains the responsibility of federal government legislators.

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Banking Intervention

Whether banks our active participants in an interventionist policy or are innocent participants acting in their own best interests, the banking system plays an important role in economic intervention.

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Market Intervention