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Qaagi - Book of Why

Causes

Effects

money demand and supply and interest ratesettingunder an inflation targeting regime

with concern for asset prices , the exchange rate and other factors(passive) can be setMonetary policy under an inflation targeting regime

a gradual shift from strict monetary targets to a framework that would use interest rates as the main instruments to anchor inflationary expectationsleadingeventually to an explicit inflation targeting regime

Efforts to modernize the monetary policy operational framework must be pursuedto createthe conditions necessary for the adoption of an explicit inflation targeting regime

risks for achieving its priority objective - support of price stability in the country , with achievement and maintenance of stable inflation rates in mid - term as its major criterion ... that it is necessaryto createconditions for moving to inflation targeting regime

the target levelsetunder the inflation - targeting regime

• Steadily strengthening the soundness of the banking system - both in the private and public banks — which will facilitate greater credit expansion , essential to maintaining the growth momentum ; • Reforms to provide for greater independence and accountability in the implementation of monetary policy —leadingto an inflation targeting regime

In the long runwill causean inflation targeting regime to break down

What type of nominal rigiditycausesNGDP to be unstable under an inflation targeting regime then

CPIX should not be usedwas designedfor the Reserve Bank 's inflation targeting only

with concern for asset prices , the exchange rate and other factors 15th Aug 16can be setwith concern for asset prices , the exchange rate and other factors 15th Aug 16

the Reserve Bank 's key interest rate , the official cash rate ( OCR ) , against the sole or dominant objective of keeping inflation within a target bandto setthe Reserve Bank 's key interest rate , the official cash rate ( OCR ) , against the sole or dominant objective of keeping inflation within a target band

an inflation band of 12 - 17 % for 2017 and the objective of reducing inflation to 5 % in 2019settingan inflation band of 12 - 17 % for 2017 and the objective of reducing inflation to 5 % in 2019

the anti - inflationary policies of the Visegrád countrieshas ... influencedthe anti - inflationary policies of the Visegrád countries

downturnscan preventdownturns

to the inflation remaining highcould have contributedto the inflation remaining high

in " the consolidation of a financialized monetary regime " , where " commercial banks have replaced traditional long term lending with market investing activitiesresultedin " the consolidation of a financialized monetary regime " , where " commercial banks have replaced traditional long term lending with market investing activities

in lowering inflation , nominal and real interest , and output volatility , which arguably brings predictability in the macroeconomic environment and thus investmenthas resultedin lowering inflation , nominal and real interest , and output volatility , which arguably brings predictability in the macroeconomic environment and thus investment

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Smart Reasoning:

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