Monetary Economics Overview Includes Monetary Policy Instruments, Functions and Impacts
Article Sidebar
Central Bank,
Investment Climate
Main Article Content
Abstract
This study discusses monetary policy, the function and impact of monetary policy as well as the factors that influence the money supply. Monetary policy is a policy or regulation issued by the Central Bank which is used to manage a number of money supplies in a country to be able to create a specific purpose. The functions and impacts of monetary policy include maintaining an investment climate that occurs within the country, increasing the stability of economic growth in a country, overcoming high levels of unemployment and opening up a number of large employment opportunities, increasing the number of the balance of payments, maintaining the stability of value. the existing currency exchange is able to maintain a number of stability of the price of goods on the market. Factors that affect the amount of money circulating in society include the size of state spending, the fast and slow rate of money circulation, the motive for having cash, the transaction motive, the precautionary motive, and the speculative motive.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
Blinder, A. S. (2007). Monetary policy by committee: Why and how?. European Journal of Political Economy, 23(1), 106-123.
Carvalho, C., & Nechio, F. (2014). Do people understand monetary policy?. Journal of Monetary Economics, 66, 108-123.
Bofinger, P., Reischle, J., & Schächter, A. (2001). Monetary policy: goals, institutions, strategies, and instruments. Oxford University Press on Demand.
Boivin, J., & Giannoni, M. P. (2006). Has monetary policy become more effective?. The Review of Economics and Statistics, 88(3), 445-462.
Hayo, B., & Hofmann, B. (2006). Comparing monetary policy reaction functions: ECB versus Bundesbank. Empirical Economics, 31(3), 645-662.
Kim, S. (2003). Monetary policy, foreign exchange intervention, and the exchange rate in a unifying framework. Journal of International Economics, 60(2), 355-386.
Loayza, N., & Schmidt-Hebbel, K. (2002). Monetary policy functions and transmission mechanisms: an overview. Serieson Central Banking, Analysis, and Economic Policies, no. 4.
Martin, C., & Milas, C. (2004). Modelling monetary policy: inflation targeting in practice. Economica, 71(282), 209-221.
Mishkin, F. S. (2007). Monetary policy strategy. Mit press.
Schmidt, S., & Nautz, D. (2012). Central bank communication and the perception of monetary policy by financial market experts. Journal of Money, Credit and Banking, 44(2‐3), 323-340.
Svensson, L. E. (2000). How should monetary policy be conducted in an era of price stability? (No. w7516). National bureau of economic research.