In this pathway we began our exploration of monetary policy with a look at money itself and the relationship between monetary policy and macroeconomic policy. We then turned to banks and banking systems, and an overview of a wide range of monetary policy tools, including the creation and cancellation of money, the reserve ratio and the monetary multiplier, and tight and easy money policies. Finally, we looked at the money market, the linkages between currencies, stocks, and bonds, and the relationship between taxes and bond prices.

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