Non-cash issue is a particular problem

Central Bank does not have any formal or de facto monopoly on this issue, and it is not the same means of accounts of commercial banks in the CB. Central banks hold in reserve requirements mainly (which they are required to power in the order of the monetary authorities) and to a lesser extent - the means for clearing. Non-cash issue is not carried out of CB. Commercial and other banks can create money supply by the same methods as the Central Bank. Thus, the overall money supply is regulated, but not its components. Monetary unity, the interaction of the money market with the market of goods and production rates makes control of business activity, give to the state an effective tool. Monetary policy, the main conduit of which, as a rule, the Central Bank should primarily affect the exchange rate, interest rates and the overall liquidity of the banking system and hence the economy. Achieving these objectives aims: to stabilize economic growth, unemployment and keep inflation low. According to the charter of any securities is usually responsible for monetary stability and the national currency and to this end is coordinating its policies with other government agencies. Most often, monetary policy is one element of the entire economic policy and directly formed on the basis of government priorities. Relations between the Central Bank and the government in conducting monetary policy, as a rule, are clearly defined. The government is limited in its actions and usually does not interfere with daily operations of the bank, coordinating with a common macroeconomic policy to distinguish between "narrow" and "broad" monetary policy. Under the narrow policy is meant to achieve the optimal exchange rate by investing in the forex market, accounting policies and other instruments affecting the short-term interest rates. Broad policy has aimed at fighting inflation through its impact on money supply in circulation. With direct and indirect methods of credit control are regulated banking system liquidity and long-term interest rates. Monetary policy should be clearly linked with the budget and tax policy and, accordingly, the financing of the budget. Category: Klasifikatsiya real estate market