1) Describe the general policy objectives for monetary policy As a member of the Eurosystem‚ the Bank of Greece does not retain control of its policy objectives. Monetary policy is set by the European Central Bank In following the policy objectives of the European Central Bank‚ Greece’s monetary policy maintains the primary objective of achieving price stability. This general objective has been quantified as achieving an inflation rate below‚ but close to‚ to 2% on the medium term. 2) Operating
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MONETARY POLICY OF PAKISTAN 2012 The basic challenge faced by Pakistan’s economy is financing its fiscal and external current account deficits. The size of these deficits may not be considered large given the current state of falling private sector investment demand in the economy. A reflection of overall low aggregate demand can be seen in the declining inflation trend‚ contraction in the real private sector credit‚ and falling volume of imports. The SBP’s monetary policy stance in FY12 so far
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The main strengths and weaknesses of sanction policies June 2015 Student ID:673806 Acronyms CIPFA: Chartered Institute of Public finance and Accounting DWP: Department of Works and Pension LCFS: Local Counter Fraud Specialist NAO: National Audit Office NFA: National Fraud Authority NHS: National Health Service NHS CFSMS: National Health Service Counter Fraud and Security Management Services XXXXX: XXXXX ousing Gr Table of Contents 1.Executive Summary..............
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Addy G Pieter Homework Macroeconomic Questions 1.- In the Republic of Ragu‚ the currency is the rag. During 2009‚ the Treasury of Ragu sold bonds to finance the Ragu budget deficit. In all‚ the Treasury sold 50‚000 10-year bonds with a face value of 100 rags each. The total deficit was 5 million rags. Further‚ assume that Ragu Central Bank reserve requirement was 20 percent and that in the same year‚ the bank bought 500‚000 rags worth of outstanding bonds on the open market. Finally‚ assume
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© 2008 International Monetary Fund February 2008 IMF Country Report No. 08/71 Islamic Republic of Afghanistan: Selected Issues This Selected Issues paper for Islamic Republic of Afghanistan was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on January 30‚ 2008. The views expressed in this document are those of the staff team and
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The Spanish fiscal policy during the recent “great recession” Abstract: This paper examines the fiscal strategy followed by the Spanish government in order to stop the fall of aggregate demand induced by the financial crisis. The Spanish economy provides the best example among the countries of the European Monetary Union of the contradictions between the discretionary fiscal policy in the crisis and the fiscal rules. The intensity of the crisis and some initial badly designed fiscal stimulus shortened
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Expansionary Fiscal Policy is identified when government spending is higher than its revenue. Expansionary fiscal policy can be used in order to either stimulate a sluggish economy or to slow down an economy that is growing at a rate that is getting out of control (which can lead to inflation or asset bubbles). Fiscal policy directly affects the aggregate demand(AD) of an economy. Aggregate Demand = Consumption + Investment + Government Spending + Net Exports Fiscal Policy has an effect on each
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2. Some economists suspect that one of the reasons that economies in developing countries grow so slowly is that they do not have well-developed financial markets. Does this argument make sense? Yes it does make sense since the financial markets have a big role in a country’s economy and has a greater affect on it if it’s working well or not (channeling the funds to people who will use them efficiently and productively). When a country works its financial markets in an efficient way (having the
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Fiscal policy in Malaysia 1. Background In the 1970s‚ the Malaysian government played a key role in the economy. The government ventured beyond its traditional functions and took on a more direct and active role in the country’s overall social and economic development process. This period saw the government’s direct participation in the private sector through the establishment of large commercial enterprises. Government participation in the economy expanded further in 1980-82 as it pursued
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is Fiscal Policy? One of the features that helps identify the economic direction of a country is fiscal policy. The government utilizes fiscal policy to control the economy through adjustment in spending levels and revenue. According to the theories of John Maynard Keynes‚ the British economist in regard fiscal policy‚ the decreasing or increasing expenditures (spending) and revenue (taxes) levels influences employment‚ inflation and the flow of money into the economic system. Fiscal policy is very
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