Essays on Monetary policy Page 2

INTRODUCTION This paper discusses several issues regarding inflation targeting to illustrate how this well-known framework has influenced the implementation of monetary policy in several economies, particularly in emerging markets. It also discusses some of the challenges ahead. Over the years, it has been clearly accepted that one of the contributions of inflation targeting has been…

Introduction              A Central Bank is essentially a bank of banks and naturally influences the operations of other banks. Downes & Vaez Zadeh (1991) argue that as a result of their intrinsic qualities and legislative prescriptions, they serve as a means of payment not only amongst individuals and firms but also among other banks and…

Philippines – Monetary authorities said yesterday that a higher economic growth next year won’t stoke inflation as long as the government manages to keep its budget deficit in check. Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the central bank could manage the impact of higher economic growth on inflation as long as…

INTRODUCTION BACKGROUND OF THE STUDY In the critical observation of the recent Nigerian economic position, there has been a great divergence between the rate at which money is supplied and the exact impact it has on the general price level, which results in inflation and deflation on one hand, and the output growth (productivity) on…

INTRODUCTIONThe problem of development is a continuing one. No country, be it developed or developing, can regard itself as having reached the peak of its growth effort. Attainment of the desired level of economic development is targeted by the developing economies for a number of reasons such as growing population, scarce resources, tall level of…

1. What is Inflation?? Inflation is the situation of the market disequilibrium in which prices of most of the goods and services persistently rise and the value of the money fall accordingly for relatively longer period of time. Inflation occurs when the amount of the money the purchaser of goods and services want to spend…

The soaring volume of international finance and increased interdependence in recent decades have increased concerns about volatility and threats of a financial crisis. This has led many to investigate and analyze the origins, transmission, effects, and policies aimed at impeding financial instability. This paper argues that financial liberalization and speculation are the most reflective explanations…