OBJECTIVES OF MONETARY POLICY. Business & Marketing Essay (Essay Sample)

Objectives of Monetary Policy
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Abstract
Managing an economy needs a special emphasis on the important components needed to ensure that enacted monetary reforms are capable of sustaining business activity and continuity, based on central banks in various states ensuring that specific financial variables are tracked, positions are sufficiently modified, and suitable strategies are enacted. Fiscal policy is a metric that can shake off the marginal degree of interest levels, handle inflation within the economy and boost growth. Such components are interlinked and therefore offer a good roadmap of how a central bank can modify its strategy in reaction to a current economic situation. Thus, the particular objectives of fiscal policies involve promoting economic and price equilibrium throughout the economy, along with creating suitable industrial relations, while affecting both international and domestic investment. Other objectives include providing credit monitoring, economic expansion, strengthening and preserving interest rates, as well as promoting foreign currency rate balance.
Objectives of Monetary Policy
Monetary initiatives are always directed at highlighting the crucial role undertaken by central banks in different nations in maintaining that they possess the capacity to promote stability in economic activities, are based upon the banks ' ability to track appropriate economic trends, correct their situation appropriately, and enforce radical policies if necessary (Deist, 2011).