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Monetary Policy Committee (MPC)
Monetary Policy Committee (MPC)
The Monetary Policy Committee (MPC) is a committee that is responsible for formulating and implementing monetary policy in a central bank. The MPC is typically a governing body or a similar entity within the central bank and is established to ensure the independence and transparency of monetary policy. The primary role of the MPC […]
Monetary Policy
Monetary policy refers to the actions and measures taken by a central bank or monetary authority to manage and control the money supply, interest rates, and credit conditions in an economy. The primary objective of monetary policy is to achieve and maintain price stability, but it can also be used to promote economic growth, employment, […]
Monetary Easing
Monetary easing, also known as expansionary monetary policy, is a strategy implemented by central banks to stimulate economic growth, increase inflation, or maintain financial stability by increasing the money supply or lowering interest rates. The primary tool used in monetary easing is the manipulation of interest rates. Central banks lower interest rates to encourage […]
Ministry of Finance (MOF)
The Ministry of Finance (MOF) is a government agency responsible for managing a country’s financial policies, fiscal resources, and public finances. Its primary role is to formulate and implement economic and financial policies that contribute to the overall development and stability of the country’s economy. The MOF is typically headed by a Finance Minister […]
Liquidity Trap
A liquidity trap is an economic situation in which monetary policy becomes ineffective in stimulating economic growth and increasing inflation, despite low interest rates. It occurs when individuals and businesses hoard cash instead of spending or investing it, even when interest rates are very low. In a liquidity trap, the central bank attempts to […]
Large Scale Asset Purchases (LSAPs)
Large-Scale Asset Purchases (LSAPs), also known as quantitative easing (QE), refer to a monetary policy tool used by central banks to stimulate the economy or implement monetary policy by purchasing large amounts of assets. These assets typically include government bonds, treasury securities, or other government securities. The main objective of LSAPs is to increase […]
Inverted Yield Curve
The Inverted Yield Curve is a term that refers to a situation in the bond market. In this scenario, the yield on shorter-term bonds is higher than the yield on longer-term bonds. Normally, bond yields increase as the maturity period lengthens. However, in the Inverted Yield Curve, this relationship is reversed, and the yield on […]
Interest on Reserve Balances
Interest on Reserve Balances (IORB) is a monetary policy tool used by the Federal Reserve in the United States. It involves paying interest on the reserve balances held by banks at the Federal Reserve. This policy tool was introduced in 2008 as part of the response to the global financial crisis. In the U.S., […]
Inflation
Inflation is generally defined as a sustained increase in the general price level of goods and services in an economy. It is measured by tracking changes in the Consumer Price Index (CPI) or the Producer Price Index (PPI), which reflect the average prices of a basket of goods and services over time. There are […]
Immaculate Disinflation
Immaculate disinflation refers to a period in an economy characterized by a rapid decline in inflation. It is a term used to describe a phase when inflation drops quickly and significantly. During an immaculate disinflation period, inflation rates decrease rapidly while economic growth remains sustainable. This term is often used to describe an economic […]
