An expansionary monetary policy may be less effective than a restrictive monetary policy because commercial banks may not be able to find good loan customers.
Monetary policy is a policy taken in an effort to achieve economic balance. This balance includes internal balance and external balance. Internal balance in the form of high economic growth, price stability, and equitable development. While the external balance is the balance of the balance of payments on foreign debts. These two balances are none other than macroeconomic objectives, namely maintaining economic stability which can be measured through wide employment opportunities, stable prices of necessities, and a balanced international balance of payments (foreign debt). So, monetary policy is a policy that regulates a country's money supply for a particular purpose. The aim is none other than maintaining economic stability, such as preventing inflation, making employees prosperous.
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