The Use Of The Monetary Policy Instruments By Central Banks Under Globalization

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Executive Summary

Under present economical environment of globalization, of the interdependence of the financial markets and instability of the capital flows, a central bank takes a great dare and responsibility in assuming the final objective of the monetary policy, naming the price stability. The decision to use certain monetary policy instruments have to be based on their capacity to an efficient and adequate contribution to the correction of the monetary market and real economy development. Under these circumstances, although the frequent use of the open market operations seems justified, some central banks, from developed counties like Japan and USA, decided to maintain the discount rate as a monetary policy instrument.

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