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Price Stability, Inflation and Central Banks
S/E/197. Show how a monetary authority can influence a country's quantity of money by setting the interest rate at which it lends to the banks. Briefly outline other methods by which it might exert monetary control
- WORDS:
- 1900
- DATE:
- 2009
- PRICE:
- 19.99 GBP
The paper examines the responsibility of central banks to maintain the stability of the national currency and money supply. The issues of interest rates and lending rates are addressed with references to the theories of profit, needs and reluctance analysing the effects of changes in the rate of interest at which the central bank lends money to commercial banks. The paper has no references.
KEYWORDS: Central bank, commercial bank, interest rate, lending rates, profit,
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