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The Monetary Policy Council therefore decides to sell securities to finance this debt. Raising interest rates is intended to discourage consumers and limit access to credit and consumption in order to counteract too high inflation. Expansive strategy The opposite to the above strategy is expansionary monetary policy, which focuses on increasing the money supply. Therefore, the Central Bank's actions will include purchasing securities and reducing interest rates.

The assumption is that this will reduce unemployment and slow down price growth and inflation. Summary The primary mission philippines photo editor of the above-mentioned monetary policy strategies is to ensure the optimal purchasing power of money. This is undoubtedly not an easy task and usually requires many economic analyses, and its effects may be visible with a significant delay. Share with others: Up Previous article PCC and a loan abroad Next article What is the transfer of real estate? Clause/disclaimer on ifirma.pl We encourage you to comment on our articles. Express your opinion and engage in discussions with other readers.



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