Monetary policy of the state
The most important place in the life of society is occupied bymonetary policy of the state. In sufficiently developed countries, it is viewed as a flexible and rapid addition to budgetary policy, as a tool for "fine-tuning" the economic situation.
Such a policy has its negative aspects,which consist in rendering only indirect influence on commercial banks, the aim is to regulate the dynamics of the supply of money. Therefore, it is impossible to directly expand or reduce them.
Assistance to the economy to achieve a general level of production, characterized by a lack of inflation and full employment, is one of the main objectives of monetary policy.
The monetary policy of the state isa set of measures for the economic regulation of credit and monetary circulation, which aims to ensure economic growth through investment activity, dynamics and inflation, and other very important macroeconomic processes.
The main goal of such a policy is to help the economy achieve a level of production that is close to full employment, and also stable prices.
The monetary policy of the state is enforced through the Central Bank, but such a policy is determined by the government.
Instruments that are used, very often in monetary policy are administrative measures, the establishment of a mandatory form of reservation, regulation of official discount rates.
The minimum reserves at the moment are part of the bank assets, all of them of commercial type should be stored on the accounts of the Central Bank.
The two main functions perform minimalreserves. First, they act as the guarantee of obligations of commercial banks on client deposits (as liquid reserves). The minimum reserves, secondly, are the instruments used by the Central Bank in order to regulate the money supply in the country.
In the Russian Federation, the statesecurities began to form in 1993. In the autumn of 1992, he was presented with domestic loan bonds, federal loan bonds, government short-term obligations.
Interest was paid on them from the federal budget, and in order to pay off the bonds that had been issued earlier, it was necessary to imitate all new tranches.
The monetary policy of the state is tightly connected with foreign economic and fiscal policy.
It should take into account the relationship of the mainmacroeconomic elements - output volume, aggregate demand, interest rate, money supply. And also the expectations of buyers (the population) and investors, the confidence of non-residents and residents in the actions of the government. The internal credit policy of the state will depend on the outflow and inflow of foreign currency into the country.
The effectiveness of the policy, as well as the art of its leadership and qualification, depends on how independent the Central Bank is as a branch of power.
The fundamentals of the monetary policy of the state aresystem of "expensive" and "cheap" money. The policy of "expensive" money is based on the fact that the offer is limited, that is, the availability of credit and increasing its costs are reduced to reduce costs and contain inflationary pressures.
Provide commercial banks with the necessary reserves, thenthere is the ability to provide loans, can policy of "cheap" money, but it can not guarantee that banks can really provide a loan and increase the supply of money.
If this situation develops, the actions of this policy will be ineffective. This phenomenon is called cyclic asymmetry.