Community Forex Questions
What is counter cycle regulation?
Various methods and techniques are used by the government to reduce bicycle fluctuations in the economy.
Two main counter-cyclic regulation strategies are available:
1. Classical approach:
Therefore, monetary policy is the key tool. This refers to the change in money supply, which is the main determinant of the economic situation. Other financial measures may also be considered. Reduce government spending, increase interest rates to reduce consumer demand.
2. Keynesian approach:
The monetary policy supports a number of financial and budgetary instruments used by government agencies. Government spending increases during times of crisis and depression, and a "cheap money" policy is implemented. When change occurs, government spending increases.
Two main counter-cyclic regulation strategies are available:
1. Classical approach:
Therefore, monetary policy is the key tool. This refers to the change in money supply, which is the main determinant of the economic situation. Other financial measures may also be considered. Reduce government spending, increase interest rates to reduce consumer demand.
2. Keynesian approach:
The monetary policy supports a number of financial and budgetary instruments used by government agencies. Government spending increases during times of crisis and depression, and a "cheap money" policy is implemented. When change occurs, government spending increases.
Counter-cycle regulation is a form of energy storage that uses the moveable weight in a hydroelectric power station to store energy during times of low electricity demand and then use that stored energy to meet high-demand periods. Rather than build expensive battery systems, which can take years to complete, counter-cycle regulation provides an inexpensive way to manage peak demand.
Nov 16, 2021 11:25