АвтоАвтоматизацияАрхитектураАстрономияАудитБиологияБухгалтерияВоенное делоГенетикаГеографияГеологияГосударствоДомДругоеЖурналистика и СМИИзобретательствоИностранные языкиИнформатикаИскусствоИсторияКомпьютерыКулинарияКультураЛексикологияЛитератураЛогикаМаркетингМатематикаМашиностроениеМедицинаМенеджментМеталлы и СваркаМеханикаМузыкаНаселениеОбразованиеОхрана безопасности жизниОхрана ТрудаПедагогикаПолитикаПравоПриборостроениеПрограммированиеПроизводствоПромышленностьПсихологияРадиоРегилияСвязьСоциологияСпортСтандартизацияСтроительствоТехнологииТорговляТуризмФизикаФизиологияФилософияФинансыХимияХозяйствоЦеннообразованиеЧерчениеЭкологияЭконометрикаЭкономикаЭлектроникаЮриспунденкция

The main tools of monetary policy

Читайте также:
  1. Analysis of the current antiinflation policy in the Republic of Kazakhstan
  2. CHAPTER 1. THEORETICAL ASPECTS OF THE MONETARY POLICY OF THE NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN
  3. Factors That Subtract from the Monetary Base
  4. Family; youth; marriage; non-traditional marriages; commune; polygamy; population policy of the state.
  5. Foreign Exchange Rate Intervention and the Monetary Base
  6. Give the description of personal selling. How does it differ from other tools of promotion mix?
  7. Goals and objectives of the monetary policy
  8. International Monetary Fund - IMF
  9. Money. Banking and monetary policy. Money: role forms and functions.
  10. Rectors, higher education, national school, fields of study, education, standards, abilities, integration, take into account, state policy, principles, space
  11. The main challenges of monetary policy in the Republic of Kazakhstan at the contemporary stage development
  12. The main directions of the monetary policy

 

Methods of monetary policy - a set of tools and operations, through which the subjects of monetary policy - the National Bank as government monetary and commercial banks as a "conductors" of monetary policy - acting on the object (the demand for money and money supply) in order to achieve the goals. Methods providing the daily monetary policy are also called the tactical goals of monetary policy.

The modern system of methods of monetary policy is as diverse as the monetary policy. Classification of methods of monetary policy can be conducted according to the different features. [8]

In the framework of the monetary policy are applied methods of direct and indirect regulation of the monetary sphere. Direct methods have the character of administrative actions in the form of various directives of the National Bank relating to the scope of the money supply and prices in financial markets. Implementation of these measures provides the most immediate effect in terms of monitoring the price of National Bank or the maximum amount of deposits and loans, especially in the economic crisis conditions. However, over time the impact of direct methods in the case of "adverse" in terms of economic agents influence on their activity can cause overflow, the outflow of financial resources in the "shadow economy" or abroad.

Indirect methods of regulation of the monetary sphere affect the motivation of behavior of economic entities with the help of market mechanisms. Of course, the efficiency of the use of indirect methods of control is closely related to the degree of development of the money market. In transition economies, especially in the early stages of transformation are using both direct and indirect instruments of phasing out the first ones by second ones. [9]

In addition to the methods of dividing monetary on direct and indirect they are divided as general and selective methods for the implementation of monetary policy.

General methods of monetary control are the methods that affect the loan market as a whole. The main of them are:

Open market operations lie in the sell or purchase by National Bank of RK from commercial banks market securities on market or pre-announced rate. Initiator of this operation is always the state and commercial banks and the public become parties to them, ascertaining the ability to obtain economic benefits. Through open market operations provided by the NBRK increases (under purchase of securities) in particular the amount of commercial banks’ own reserves and the entire banking system, which involves a change in the cost of credit, hence the demand for money.

Reserve ratio (reserve requirements) is part of bank deposits, which should be in the National Bank.

Reserve ratio is a kind of emergency reserve fund that commercial banks are not allowed to use for their operations.

This reserve ratio is setting by the state (through the National Bank, and usually during the fiscal year it can be changed several times.)

Via regulating reserve requirements the government increases or decreases the total money supply in the country.

Discount rate is the rate that refinancing at which NBRK provides loans to commercial banks and recounts their bills.

If NBRK increases discount rate, then NBRK’s loan will cost more for the commercial banks (in the case they have deficit of reserves), so they are trying to increase their reserves by buying assets or requiring early repayment of outstanding loans. Both cause a decrease in the money supply amount. Reducing the discount rate leads to an expansion of credit and an increase in the quantity of money in circulation. [10]

Among the considered methods of monetary policy the most effective are open-market operations. The sales of the government securities allows for a short period of time to impact significantly on the total money supply, which participates in circulation. Although the other two methods are used by many governments they do not have a significant impact on the circulation of money. Therefore, the general methods can be complemented by a number of other measures of monetary policy:

- Currency reform;

When the inflation rate is 1,000% daily and money worth less and less, so that their purchasing power equals zero, state conducts monetary reform nullification or denomination. This is an extreme measure is used in exceptional cases.

- Restriction of consumer credit;

For this purpose the National Bank requires commercial banks which are providing credit to individuals to make special contributions to the reserve fund. By this state holds back the desire of commercial banks to provide consumer credit, because money does not bring back interest.

- Reducing lending of companies.

Sometimes the government through a policy of combating with inflation encourages commercial banks to reduce lending. As a rule banks knowing about possible sanctions from the state side, trying to fulfill them on time.

In the system of monetary policy, there are always a number of indirect methods dedicated to control the money supply. The most important are:

- State registration of banks. In all countries with a market economy as a obligatory condition of registration and licensing of commercial banks Second Level Banks have to have evidence of its holdings of the charter capital in a certain fixed amount. Increasing or decreasing the amount of charter capital the state indirectly affects the number of economic entities, which may engage in credit issue.

- Depreciation policy. By regulation the rate of depreciation, the state indirectly is conductive to increase or decrease the money supply, that is, accelerated depreciation allows companies to quickly return the input material factors of production funds and use them for production development.

Selective methods include:

- Control according to certain types of loans. It is common practices in respect to loans secured by exchange of securities, consumer loans for the purchase of goods on credit, mortgage credit. Regulation of consumer credit is usually brings in periods of market stress on loan capital when the state seeks to redistribute them in favor of certain industries or limit the total amount of consumer demand.

- Regulation of liquidity of banking operations. In the numerous governmental regulations and the documents governing the operations of the bank, principal attention is paid on risk and liquidity of banking operations. Banking risk is determined by the ratio of loans and the amount of the bank's equity.

All of these methods have an indirect and overall impact on the economy, so the quantitative result of the use of these funds is extremely difficult to preliminary estimate. [11]

Thus, monetary policy – one of the most powerful economic policy instruments at the disposal of the state.

The fundamental objective of monetary policy is to help the economy to reach a total production level, characterized by full employment and price stability. Monetary policy is a change in money supply in order to stabilize aggregate output (steady growth), employment and price levels.

The main task of monetary policy the central bank is to maintain a stable purchasing power of the national currency and ensuring the flexible system of payments and settlements. At the same time the central bank's policy is one of the most important parts of regulating the economy of the state.

With such means as reviewing reserve ratio, the change in the discount rate and open market operations, the Central Bank may have a determining impact on money supply, and through it – the real national product, employment and price index.

Monetary policy largely determines the exchange rates, thereby affecting the efficiency of foreign trade import and export. It can be used not only to change the basic domestic macroeconomic variables, but also to control the trade deficit.

Without the correct monetary policy pursued by the Central Bank, the economy cannot function effectively. In periods of economic recession and rising unemployment, declining productivity central bank should increase the money supply to stimulate investment of financial resources in the production and consumer spending, this step is necessary to increase aggregate demand. [4]

 


1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |

Поиск по сайту:



Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав. Студалл.Орг (0.004 сек.)