Monetary policy is the use by the Government or central bank ( In Indian Context RBI) of interest rates or controls on the money supply to influence the Economy. The reserve bank of India is the agency which formulates and Implements monetary policy on behalf of the Indian government in an attempt to achieve a set of objectives that are expressed in terms of macroeconomic variables such as the achievement of a desired level or rate of growth in real activity‚ the exchange rate‚ the price level or
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rates and government budget as well as the labor market‚ national ownership‚ and many other areas of government interventions into the economy. Such policies are often influenced by international institutions like the International Monetary Fund or World Bank as well as political beliefs and the consequent policies of parties. ------------------------------------------------- Types of economic policy[edit] Almost every aspect of government has an economic aspect involving a near superfluous quantity of
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„ Banking sector in Poland and China” As far as banking sector is concerned‚ there may be different banking structures‚ different banking institutions‚ dependent or independent from government worldwide. In this essay I would like to focus my attention only on banking sector in Poland and China. Why on those countries? Actually‚ China and Poland really differ not only in their economic background. But I would like to focus only on those differences. Starting with the information that China
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The Euro Currency Market The European Union ’s currency‚ the euro‚ "is now in use by 12 nations with a total population of 300 million people in an economic zone two-thirds the size of the US economy" (Posen‚ 2005). According to Posen (2005)‚ since its introduction on January 1‚ 1999‚ the euro has been readily accepted both at home and in global capital markets. "Several nations in eastern Europe and around the Mediterranean are eager to join the euro zone or peg their national currencies
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Japan‚ the Minister of Finance is legally authorized to conduct intervention as a means to achieve foreign exchange rate stability. In the United States‚ the Government and Federal Reserve Board (FRB); in Euro Area‚ the European Central Bank (ECB); in the United Kingdom‚ the Bank of England (BOE) operates it. General Ideas of Foreign Exchange Market Foreign Exchange Market To invest in other countries or to buy foreign products‚ firms and individuals may first need to acquire the currency of the
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institutions‚ the bailout of banks by national governments‚ and downturns in stock markets around the world. In many areas‚ the housing market also suffered‚ resulting in evictions‚ foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses‚ declines in consumer wealth estimated in trillions of U.S. dollars‚ and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. The active
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The Chair Mr Jean-Claude Trichet Chairman of the Global Economy Meeting President European Central Bank Postfach 16 03 19 60066 Frankfurt am Main Germany 1 September 2011 Draft CGFS report on Global Liquidity Dear Jean-Claude In my capacity as Chairman of the Committee on the Global Financial System (CGFS)‚ I am circulating to the Global Economy Meeting a draft report on Global liquidity – concept‚ measurement and policy implications. The report‚ which follows up on a request by ECC Governors
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Government debt can be divided into two categories namely domestic debt and international debt. The International debt is facilitated by the formation of such institutions like the International Monetary Funds (IMF) the International Bank for Construction and Development (World Bank). Governments borrow money from the private sector and foreign governments if they can’t pay for all their spending with taxes and government revenues. A government will issue bonds at bond auctions every so often and market
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The economic policy of a government needs to be supportive of a country’s best interests. It may be argued that the main objective of a government is to promote sustained economic growth to improve and increase the nation’s prosperity (Nellis and Parker‚ 1996). This can only be achieved with structural policies used to enhance the long term economic performance and the creation of a stable macroeconomic environment that will encourage stable growth to take place. This requires management of both
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suffered a lot when its three major banks collapsed in the same week in October 2008. As a consequence of the banking crisis‚ Iceland entered a deep recession and deep cuts in employment were made and the exchange rate dropped sharply which caused the inflation to soar. The Central Bank of Iceland has been criticized for its monetary policy in the past and how it handled the collapse. This thesis is intended to examine the monetary policy in Iceland and how the Central Bank handled the collapse and to look
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