72,788 views
39 votes
39 votes
Contractionary monetary policy is designed to;

User Dwelle
by
2.9k points

1 Answer

9 votes
9 votes
The goal is to reduce inflation by limiting the amount of active money circulating in the economy. It also aims to quell unsustainable speculation and capital investment that previous expansionary policies may have triggered.
User Christian Scott
by
2.7k points