Monetary Policy Finance 241 Gazizova Rufina Utekov Rustem

Monetary Policy Finance 241 Gazizova Rufina Utekov Rustem

What is it? • Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.

• The objective of the monetary policy is to maintain the stability of the value of the currency and thereby promote economic growth. Objectives Price Stability Exchange stability Full Employment and Maximum Output Economic growth

Types of regulating • In practice, to implement any type of monetary policy the main tool used is modifying the amount of base money in circulation. The monetary authority does this by buying or selling financial assets (usually government obligations). These open market operations change either the amount of money or its liquidity.

• • • Monetary Policy: Inflation Targeting Price Level Targeting Monetary Aggregates Fixed Exchange Rate Gold Standard

GDP • Тhe Gross Domestic Product (GDP) in Japan was worth 4901 billion US dollars in 2013. The GDP value of Japan represents 7. 90 percent of the world economy. GDP in Japan averaged 2481. 74 USD Billion from 1960 until 2013, reaching an all time high of 5938 USD Billion in 2012 and a record low of 44. 30 USD Billion in 1960. GDP in Japan is reported by the World Bank Group

Inflation • Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. • The inflation rate in Japan was recorded at 3. 20 percent in September of 2014. Inflation Rate in Japan averaged 3. 16 Percent from 1958 until 2014, reaching an all time high of 25 Percent in February of 1974 and a record low of -2. 52 Percent in October of 2009. Inflation Rate in Japan is reported by the Ministry of Internal Affairs & Communications.

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