The objectives of U.S. monetary policy are U.S. monetary policy

Updated on Financial 2024-05-11
8 answers
  1. Anonymous users2024-02-10

    The ultimate goal of China's monetary policy is to maintain currency stability and thereby promote economic growth.

    The monetary policy objective is the ultimate goal of the monetary policy adopted by a country's ** bank or monetary authority. Including: economic growth, ** level stability, full employment, interest rate stability, exchange rate stability, balance of payments.

    While central banks cannot directly bring about these conditions, they can formulate different policies for the variables it can influence. There is often a conflict between the many objectives of monetary policy, which can achieve one goal but also makes the other more difficult to achieve.

    Extended content. 1. The content of monetary policy objectives:

    The ultimate goal expected to be achieved through the formulation and implementation of monetary policy is the highest code of conduct for monetary policymakers and banks.

    The objectives of monetary policy can generally be summarized as: price stability, full employment, economic growth, balance of payments, and financial stability.

    Stable prices refer to controlling changes in the general price level within a relatively small range and not causing significant or sharp fluctuations in a short period of time.

    Full employment refers to reducing the unemployment rate to a level that a society can afford.

    Economic growth refers to the fact that the economy has always been in a state of stable growth for a long period of time, and one period is better than another, without major ups and downs, and without recession.

    The objectives of monetary policy include: ultimate objectives, intermediary objectives, and operational objectives.

    2. What is monetary policy?

    Monetary policy is a kind of financial policy, which refers to the general term of various guidelines, policies and specific measures adopted by banks to control and regulate the amount of money and credit in order to achieve their specific economic goals. The essence of monetary policy is that the state adopts different policy trends such as "tight", "loose" or "moderate" according to the economic development of different periods, and the bank uses various tools to adjust the amount of money to adjust the market interest rate, and affects the capital investment of the private sector through the change of the market interest rate, so as to indirectly control the aggregate demand to affect the macroeconomic operation.

  2. Anonymous users2024-02-09

    The monetary policy objective is the ultimate goal of the monetary policy adopted by a country's ** bank or monetary authority.

    These include economic growth, a stable level, full employment, a stable interest rate, a stable exchange rate, and a balance of payments. Banks cannot directly serve these purposes, but they can develop different policies depending on the variables they can influence. There are often conflicts between the many objectives of monetary policy.

    Policies can achieve one goal, but they also make it harder to achieve another.

    In China, there are two propositions for the choice of monetary policy objectives. One is a single objective, with monetary stability as the primary basic objective; The other is the dual goal of stabilizing the currency and developing the economy.

    Judging from the historical evolution of the monetary policies of central banks, whether it is a single objective, a dual objective or a multi-objective, it is inseparable from the economic and social environment at that time and the most prominent basic contradictions faced. However, monetary policy should maintain sufficient stability and continuity, and the policy objectives should not be deviated or changeable.

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  3. Anonymous users2024-02-08

    China's monetary policy refers to the interest rate policy, the policy of exchange rate and the credit policy implemented by the People's Bank of China.

  4. Anonymous users2024-02-07

    The goal of our country's monetary policy is what the socks are before.

  5. Anonymous users2024-02-06

    The ultimate goal of monetary policy is to stabilize prices, grow the economy, achieve full employment, and balance the balance of payments. Article 3 of the People's Bank of China Law of the People's Republic of China stipulates that the objective of China's monetary policy is to maintain the stability of the currency value and promote economic growth.

  6. Anonymous users2024-02-05

    1. During the inflationary period, the monetary policy target is moderately tightened. During the period of hyperinflation, monetary policy targets a tight monetary policy.

    2. During the economic depression, the monetary policy target is moderate easing. During a vicious recession, monetary policy targets loose monetary policy.

    3. In the period of economic stability, the goal of monetary policy is a prudent monetary policy.

  7. Anonymous users2024-02-04

    Answer: c

    The ideal policy must pursue monetary neutrality, i.e., inflation targeting. However, at different stages of development, the transport group will have different emphases on policy objectives, but they must all be premised on the price level within a reasonable range.

  8. Anonymous users2024-02-03

    Summary. It is necessary to have a correct understanding of China's international capital flows in 2015 and avoid two popular beliefs: one is the mistaken belief that the onshore RMB is relatively stable and the foreign exchange account is still maintaining positive growth, and the presumption that the Fed's QE withdrawal will have little impact on China's international capital flows.

    It is based on domestic factors such as domestic and foreign interest rate differentials, China's good economic fundamentals, and other domestic factors, and does not conduct research on the changes in monetary policy in developed countries. The other is the "Fed QE exit phobia", which believes that the future is the stage of continuous tightening of US monetary policy, the US dollar will continue to strengthen, the interest rate on US long-term Treasury bonds will continue to rise, the currencies of emerging economies, including China, will weaken, and international capital will flee on a large scale, which will suffer a catastrophe.

    Monetary policies in China and the United States in 2015.

    It is necessary to have a correct understanding of China's international capital flows in 2015 and avoid two popular beliefs: one is the mistaken belief that the onshore RMB is relatively stable and the foreign exchange account is still maintaining positive growth, and the presumption that the Fed's QE withdrawal will have little impact on China's international capital flows. It is based on domestic factors such as domestic and foreign interest rate differentials, China's good economic fundamentals, and other domestic factors, and does not study the changes in the monetary policy of the country.

    The other is "Fed QE exit phobia", which believes that the future is the stage of continuous tightening of US monetary policy, the US dollar will continue to strengthen, the interest rate of US long-term Treasury bonds will continue to rise, the currencies of emerging economies, including China, will weaken, and international capital will flee on a large scale, which will suffer a catastrophe.

    In 2015, the monetary policies of developed countries may continue to diverge, on the one hand, the normalization of US monetary policy has brought about international capital outflows; On the other hand, the eurozone and Japan's monetary policy suspicion of filial piety may be a hedge. In view of this, it may be more appropriate to take a dialectical, volatile and volatile approach to China's international capital flows in 2015.

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