top of page

Economics explained


Macroeconomic policies

Limitations of monetary policy

Limitations of monetary policy

The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
Our notes:
  • are clear and concise and relevant
  • is set in an engaging template to facilitate memorisation
  • cover all the important topics in the O level, AS level and A level syllabus
  • are editable, feel free to make additions or to rephrase sentences in your own words!

    Looking for live explanations of these notes? Enrol now for FREE tuition!

Time lags

There are time lags to the reaction to interest rate changes in the economy. This can make the effectiveness of monetary policy less certain or even destabilising for the economy.

Other factors

Economic activity is not totally and only dependent on interest rates. Other factors, such as consumer and business confidence levels, have an impact on gross domestic product.

Conflicts with other objectives

Some economists argue that the use of monetary policy can be counter productive because it restricts economic activity and discourages foreign direct investment in the country.

For example, higher interest rates (used to combat inflation) can conflict with other macroeconomic objectives, especially with economic growth and employment

bottom of page