Tool and goal of monetary policy

The open economy faces many internal and external shocks, so the macroeconomic stability becomes the top priority goal. When the economy increasingly integrates into international economy, the central bank needs to gradually reduce using direct monetary tools and switch to using indirect ones.

37p mmlemmlem_124 22-12-2020 16 3   Download

Open market operations Affect the quantity of reserves and the monetary base Changes in borrowed reserves Affect the monetary base Changes in reserve requirements Affect the money multiplier Federal funds rate—the interest rate on overnight loans of reserves from one bank to another Primary indicator of the stance of monetary policy

23p sony_12 25-06-2013 82 15   Download