Problem:

A question that arises in training is, "How does monetary policy help sustain growth and help the ups and downs of the business cycle?" Given the key role of monetary policy and knowing this question will continue to arise, you decide to add a section about this topic.

Describe how monetary policy helps to sustain economic growth and smooths out the swings in the business cycle.

Examine the ways in which monetary policy can influence a nation's economic goals of achieving full employment, controlling inflation, sustaining adequate economic growth, and achieving a stable balance-of-payments position.