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What has the author Jeffery D Amato written?
Jeffery D. Amato has written: 'The real-time predictive content of money for output' -- subject- s -: Econometric models, Monetary policy, Money supply, Prediction theory 'Implications of habit formation for optimal monetary policy' -- subject- s -: Consumption - Economics -, Interest rates, Mathematical models, Monetary policy 'The role of the natural rate of interest in monetary policy' 'Forecast-based monetary policy' -- subject- s -: Central Banks and banking, Economic forecasting, Mathematical models, Monetary policy
Describe the role of central banks and their efffect on the global economy?
A monetary policy making and has an influence over the financial conditions of the global market as a whole. SK(apex)
What has the author Gerald R Jensen written?
Gerald R. Jensen has written: 'The role of monetary policy in investment management' -- subject(s): Investments, Monetary policy
What is the role of bureaucrats in implementing public policy?
they take action to enforce new laws
What Objectives of Monetary policy?
The objectives of monetary policy are to stabilise the currency,check the inflationary trend, to minimise the current account deficit as a percentage of the GDP. The monetary policy is generally controlled by the Finance Ministry,with Federal Reserve Bank playing the pivotal role in fulfilling the above objectives.
What is central monetary authority?
In any petition for removal under the Hague Convention on the Civil Aspects of International Child Abduction. The Central Authority plays a prominent role. The Central Authority is designated to play a key which facilitates the implementation and operation of an international treaty in private international law.
Define the role of central bank and as a credit controller?
As a credit controller, central bank controls the volume of credit for maintaining monetary stability. It is the leader in the money market.
What has the author James P Ford written?
James P. Ford has written: 'The changing role of the Federal Reserve System in monetary control' -- subject(s): Monetary policy, Federal Reserve banks
What is a main goal of the Federal Reserve in its monetary policy?
Meaning of Monetary PolicyThe term monetary policy is also known as the 'credit policy' or called 'RBI's money management policy' in India. How much should be the supply of money in the economy? How much should be the ratio of interest? How much should be the viability of money? etc. Such questions are considered in the monetary policy. From the name itself it is understood that it is related to the demand and the supply of money. Definition of Monetary PolicyMany economists have given various definitions of monetary policy. Some prominent definitions are as follows.According to Prof. Harry Johnson,"A policy employing the central banks control of the supply of money as an instrument for achieving the objectives of general economic policy is a monetary policy."According to A.G. Hart,"A policy which influences the public stock of money substitute of public demand for such assets of both that is policy which influences public liquidity position is known as a monetary policy."From both these definitions, it is clear that a monetary policy is related to the availability and cost of money supply in the economy in order to attain certain broad objectives. The Central Bank of a nation keeps control on the supply of money to attain the objectives of its monetary policy.Objectives of Monetary PolicyThe objectives of a monetary policy in India are similar to the objectives of its five year plans. In a nutshell planning in India aims at growth, stability and social justice. After the Keynesian revolution in economics, many people accepted significance of monetary policy in attaining following objectives.1. Rapid Economic Growth2. Price Stability3. Exchange Rate Stability4. Balance of Payments (BOP) Equilibrium5. Full Employment6. Neutrality of Money7. Equal Income DistributionThese are the general objectives which every central bank of a nation tries to attain by employing certain tools (Instruments) of a monetary policy. In India, the RBI has always aimed at the controlled expansion of bank credit and money supply, with special attention to the seasonal needs of a credit.Let us now see objectives of monetary policy in detail :-1. Rapid Economic Growth : It is the most important objective of a monetary policy. The monetary policy can influence economic growth by controlling real interest rate and its resultant impact on the investment. If the RBI opts for a cheap or easy credit policy by reducing interest rates, the investment level in the economy can be encouraged. This increased investment can speed up economic growth. Faster economic growth is possible if the monetary policy succeeds in maintaining income and price stability.2. Price Stability : All the economics suffer from inflation and deflation. It can also be called as Price Instability. Both inflation are harmful to the economy. Thus, the monetary policy having an objective of price stability tries to keep the value of money stable. It helps in reducing the income and wealth inequalities. When the economy suffers from recession the monetary policy should be an 'easy money policy' but when there is inflationary situation there should be a 'dear money policy'.3. Exchange Rate Stability : Exchange rate is the price of a home currency expressed in terms of any foreign currency. If this exchange rate is very volatile leading to frequent ups and downs in the exchange rate, the international community might lose confidence in our economy. The monetary policy aims at maintaining the relative stability in the exchange rate. The RBI by altering the foreign exchange reserves tries to influence the demand for foreign exchange and tries to maintain the exchange rate stability.4. Balance of Payments (BOP) Equilibrium : Many developing countries like India suffers from the Disequilibrium in the BOP. The Reserve Bank of India through its monetary policy tries to maintain equilibrium in the balance of payments. The BOP has two aspects i.e. the 'BOP Surplus' and the 'BOP Deficit'. The former reflects an excess money supply in the domestic economy, while the later stands for stringency of money. If the monetary policy succeeds in maintaining monetary equilibrium, then the BOP equilibrium can be achieved.5. Full Employment : The concept of full employment was much discussed after Keynes's publication of the "General Theory" in 1936. It refers to absence of involuntary unemployment. In simple words 'Full Employment' stands for a situation in which everybody who wants jobs get jobs. However it does not mean that there is a Zero unemployment. In that senses the full employment is never full. Monetary policy can be used for achieving full employment. If the monetary policy is expansionary then credit supply can be encouraged. It could help in creating more jobs in different sector of the economy.6. Neutrality of Money : Economist such as Wicksted, Robertson have always considered money as a passive factor. According to them, money should play only a role of medium of exchange and not more than that. Therefore, the monetary policy should regulate the supply of money. The change in money supply creates monetary disequilibrium. Thus monetary policy has to regulate the supply of money and neutralize the effect of money expansion. However this objective of a monetary policy is always criticized on the ground that if money supply is kept constant then it would be difficult to attain price stability.7. Equal Income Distribution : Many economists used to justify the role of the fiscal policy is maintaining economic equality. However in resent years economists have given the opinion that the monetary policy can help and play a supplementary role in attainting an economic equality. monetary policy can make special provisions for the neglect supply such as agriculture, small-scale industries, village industries, etc. and provide them with cheaper credit for longer term. This can prove fruitful for these sectors to come up. Thus in recent period, monetary policy can help in reducing economic inequalities among different sections of society.Articles on Monetary Policy1. Instruments of Monetary Policy.2. Limitations of Monetary Policy.3. Recent Reforms in Monetary Policy.4. Evaluation of Monetary Policy.
WHAT COUNTRY USES ZHONGGUO RENMIN YINHANG?
Zhongguo Renmin Yinhang, or the People's Bank of China, is the central bank of China. It is responsible for the country's monetary policy and financial regulation. The bank plays a crucial role in managing the Chinese economy and currency, the yuan (CNY).
Why do central bank an important role in the global economy?
Central banks control the foreign currency reserves that are used for international trade.They also set each country's monetary policies.
Why do economists differ regarding their views on fiscal and monetary policy?
Economists differ in their views on fiscal and monetary policy due to varying theoretical frameworks, beliefs about market efficiency, and interpretations of historical data. Some emphasize the effectiveness of government intervention through fiscal policy to stimulate demand during economic downturns, while others prioritize monetary policy and the role of central banks in managing inflation and interest rates. Additionally, differing assumptions about how quickly and effectively policies take effect can lead to contrasting opinions on their appropriateness and effectiveness in different economic contexts. These ideological differences and empirical interpretations contribute to the diversity of thought in economic circles.
