Which one is considered a limitation of monetary policy?
A)the cause-effect chain
B)its cyclical asymmetry
C)its isolation from political pressure
D)the speed with which it can be implemented

Question

Quizplus · Accepted Answer

Cyclical asymmetry is a limitation of monetary policy, meaning that it may be less effective in addressing economic downturns than it is in controlling inflation during expansions. The cause-effect chain and speed with which it can be implemented are considerations, but not necessarily limitations. The isolation from political pressure can be seen as an advantage in maintaining independence, but some may argue it limits accountability.

Which One Is Considered a Limitation of Monetary Policy