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is vital to economic development. There are many factors in the control system and the economic structure of society. Whether the choice of production factors is limited. The possibility of producing. Or policies that impact on the economy. Monetary policy is the macroeconomic policies that have been implemented by the central bank to control the money supply. And loan volume to a level appropriate to the situation. This will affect interest rates and economic activity directly (Limyothin. 2015) by government policies, each of which may have a different purpose in using it. In developing countries like Pakistan, the objective may be to maintain financial stability and the process of economic development (Saab. 2011) in developed countries such as Australia. The purpose is to Achieve full employment (Reserve Bank of Australia 2013), however, the primary objective of monetary policy to stabilize the economy. And stimulate economic growth and stability as inflation and deflation at a reasonable level. The stability of the exchange rate, which is used as a measure of economic stability of the country. To promote economic growth by providing adequate credit to the private sector. And the credit spread evenly. To reduce the unemployment rate And increase the standard of living of the population in policies relating to financial instruments, including the amount of money (Money supply) Exchange (Exchange rate) and interest rates (Interest rate).
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