2020 Academic year

VI course
CSB
Subject:
Banking

Students:
Giorgi Enukidze
Achi Tediashvili
Luka Miruashvili
Lasha kandelaki
Tinatin Bakashvili
Nini Panjikidze
Central banks and monetary policy

The main purpose of a monetary policy is to maintain the economic stability, purchasing
power of money, an effective system of payments and decrease in inflation or
unemployment.
Federal
Reserve and Congress has given the Fed two main goals:
• maximum sustainable employment;

its monetary • stable prices, which means low, stable

inflation.

policy tools
Conventional policy tool

• Open market operations

• Changing reserve requirements
• Changing the discount rate
Modern Tendency

monetary policy can play a role in limiting

the economic and financial damage caused
by efforts to contain COVID-19 and, in that
way, can help support the strict public-
health measures that are needed to save
lives and set the stage for economic
recovery.
 Unconventional policy was born of
necessity given the financial crisis,
Unconventional deep recession, and near-zero short-
policy tool term interest rates.
 When inflation runs well below
its desired level, households
and businesses will come to
expect this over time, pushing
expectations for inflation in the
future below the Federal
Reserve’s longer-run inflation
goal.

Policy and its impacts on

inflation
Thank you for your attention!
Bibliography

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