BANGKO SENTRAL NG PILIPINAS The Bangko Sentral ng Pilipinas (BSP) is the independent central monetary authority of the Republic of the Philippines. Established under the New Central Bank Act of 1993‚ the BSP is primarily mandated by law to ensure the maintenance of price stability conducive to a balanced and sustainable growth of the economy. Policy-Making Body The Monetary Board is the highest policy-making body in the BSP. It consists of five full-time private sector representatives and
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1. Type of basic mechanisms for exchange rates a). Free float Free floating or clean float is a type of country’s exchange rate regime where a currency’s value is allowed to fluctuate according to the foreign exchange market. Free floating exchange rate is determined by the interaction of currency supplies and demands with no government intervention. It always termed “self- correcting’ as if any differences in supply and demand‚ the exchange rate will automatically be corrected in the market
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Econ 2123 Problem Set 2 Instructor: Wenwen Zhang TA: Mike Cheng Lecture: L5‚ L6 Due date & Homework Submission Location: Before 10/14 Tue 5:30p.m. Dropbox on the LSK 6th floor (Outside Econ Department) Name: _________________________________ Student ID: _____________________________ Lecture: ________________________________ Multiple Choices 1. Which of the following would NOT be considered part of fixed investment spending (I)? A) Toyota buys a new robot for its automobile assembly
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Established July 3‚ 1993 Governor Amando M. Tetangco‚ Jr. Central bank of Philippines Currency Philippine peso PHP (ISO 4217) Reserves US$83 billion[1] Bank rate 4.00% Preceded by Central Bank of the Philippines (January 3‚ 1949—July 3‚ 1993) Website www.bsp.gov.ph The Bangko Sentral ng Pilipinas (English: Central Bank of the Philippines; Castilian Spanish: Banco Central de Filipinas; abbreviated as BSP in both Filipino and English) is the central bank of the Philippines. It was established on July 3
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1. What is the difference between QE (quantitative easing) and more orthodox open market operations conducted by central banks? During the period of 1986 to 1991‚ the Japanese economy was experiencing an economic bubble that was characterized by highly inflated real estate and stock prices. The subsequent effects of the bubble’s inevitable collapse lasted over a decade with the stock prices reaching their lowest values during the year 2003. It was during this recessionary period of the early 2000s
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How might delegation to a conservative central banker help overcome the inflationary bias to monetary policy? Demonstrate this result formally or graphically. [8 Marks] In much of the literature on Central Bank Independence CBI‚ independence is often not distinguished carefully from conservativeness. In fact‚ most of the legal indicators for CBI give a central bank a higher score if price stability is the (primary) objective of the central bank concerned‚ while it‚ of course‚ implies less goal
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- Four major central banks‚ Britain’s and Japan’s already have the interest rate at near zero and the European Central Bank (ECB)’s interest rate is going to stuck near zero. During that time‚ the balance sheets of all four institutions have expended as they increasing the volume and range of assets and loans. - Mr. Blinder‚ a Princeton economist and former Fed officer‚ insisted that the monetary policy and fiscal policy have no longer effect because of large debt make the central bank to operate
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intervene when they believe it is necessary. QUESTION 2 How can a central bank use direct intervention to change the value of a currency? Explain with example. Explain why a central bank may desire to smooth exchange rate movements of its currency. ANSWER: Central banks can use their currency reserves to buy up a specific currency in the foreign exchange market in order to place upward pressure on that currency. Central banks can also attempt to force currency depreciation by flooding the
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that stimulate economic growth. Most bank debt is held by small creditors. In the view of many bankers and central bankers‚ regulation is motivated‚ in particular‚ by the need to protect these small depositors who are unsophisticated and unable to understand the balance sheet and off – balance sheet activities of the banks. The banking regulator represents the depositors. The central bank monitors the banks’ activities ex ante seeing to it that the bank meets capital adequacy requirements to ensure
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in 1555-1556. The Ghaznavid state grew weaker under Mahmud’s descendants and gave way in the middle of the 12th century to the Ghurid kingdom‚ which arose in Ghur‚ in the west central region of present-day Afghanistan. The Ghurids in turn were routed early in the 13th century by the Khwarizm Shahs‚ another central Asian dynasty. They were swept away in about 1220 by the Mongol conqueror Genghis Khan‚ who devastated the land. Muhammad of Ghaur
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