Bahrain Monetary Policy
Monetary Policy in Bahrain
Introduction:
Monetary policy are the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves). In the kingdom of Bahrain, The Central Bank of Bahrain (CBB) is responsible for setting and implementing monetary policy. The next papers are going to elaborate in the monetary policy in Bahrain and how the CCB is implementing and controlling it, also explaining the obstacles and how the monetary policy in Bahrain can over come them.
The general definition of monetary policy:
Many authors define monetary policy as the activities undertaken by a government agency, typically the central bank of a country, to moderate the supply of money, availability of money, and cost of money or rate of interest to help promote economic growth, price stability, high employment, and a stable currency for use in international trade transactions.[1]
Monetarist economists believe that monetary policy is a more powerful weapon than fiscal policy in controlling inflation. Monetary policy also involves changes in the value of the exchange rate since fluctuations in the currency also impact on macroeconomic activity (incomes, output and prices).[2]
Monetary Policy in Bahrain:
The Central Bank of Bahrain (CBB) is responsible for setting and implementing monetary policy in the Kingdom of Bahrain. The Central Bank of Bahrain is responsible for setting and implementing monetary policy in Bahrain. There are approximately 400 financial institutions licensed by the Central Bank, which are subject to the Central Bank and the Financial Institutions Law.[3]
Bahrain has a free market economy, with no restrictions on
Introduction:
Monetary policy are the actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Monetary policy is maintained through actions such as increasing the interest rate, or changing the amount of money banks need to keep in the vault (bank reserves). In the kingdom of Bahrain, The Central Bank of Bahrain (CBB) is responsible for setting and implementing monetary policy. The next papers are going to elaborate in the monetary policy in Bahrain and how the CCB is implementing and controlling it, also explaining the obstacles and how the monetary policy in Bahrain can over come them.
The general definition of monetary policy:
Many authors define monetary policy as the activities undertaken by a government agency, typically the central bank of a country, to moderate the supply of money, availability of money, and cost of money or rate of interest to help promote economic growth, price stability, high employment, and a stable currency for use in international trade transactions.[1]
Monetarist economists believe that monetary policy is a more powerful weapon than fiscal policy in controlling inflation. Monetary policy also involves changes in the value of the exchange rate since fluctuations in the currency also impact on macroeconomic activity (incomes, output and prices).[2]
Monetary Policy in Bahrain:
The Central Bank of Bahrain (CBB) is responsible for setting and implementing monetary policy in the Kingdom of Bahrain. The Central Bank of Bahrain is responsible for setting and implementing monetary policy in Bahrain. There are approximately 400 financial institutions licensed by the Central Bank, which are subject to the Central Bank and the Financial Institutions Law.[3]
Bahrain has a free market economy, with no restrictions on