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Obvious phenomena that contradict this state may include, for example, inflation or deflation. Therefore, a stable price level means that the average prices of goods or services remain at a constant level in the selected time horizon. However, due to the dynamics of economic phenomena, maintaining balance is almost impossible. Therefore, the country's monetary policy should be conducted in such a way as to strive to achieve relative stability.
The Central Bank accomplishes this task by controlling the money supply the amount of money in circulation . Depending on philippines photo editor the situation, it may be reduced sale of government securities, Monetary policy tools Specific tools activities are used for this purpose, which are: Regulating the rate of required reserves - its increase causes a decrease in the supply of money in circulation, and its reduction - an increase in the supply of credits, which increases the amount of money in market circulation. Banks, credit institutions, branches of foreign banks in Poland, and cooperative savings and credit unions are obliged to maintain such reserves. Managing the amount of required reserves is aimed at mitigating the excess liquidity of the banking system.
Which is related to the central bank's debt to private banks; Regulating the level of interest rates - e.g. their increase reduces inflation, while their decrease stimulates the economy; Carrying out open market operations, i.e. selling or buying securities, is intended to regulate the amount of money in market circulation and the level of interest rates. Conducting credit and deposit operations allows limiting fluctuations in interest rates on the money market Monetary policy strategies and the economy How can the NBP act to ensure price stability and counteract the negative effects of business cycle fluctuations? Inflation targeting strategy Its basis is to set and announce to the public a specific inflation target, which at the moment is approximately.
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發表於 2023-10-9 13:16:00