imported>Doug Williamson |
imported>Administrator |
| Line 1: |
Line 1: |
| Monetary policy is central government or other policy to stimulate or otherwise influence economic activity by influencing money supply or interest rates.
| | ''Pensions''. |
| | Projected Benefit Obligation. |
|
| |
|
| Historically, mechanisms for influencing the money supply have included the use of open market operations, quantitative easing, the central bank discount rate and reserve requirements.
| | == See also == |
| | | * [[ABO]] |
| | | * [[Projected benefit obligation]] |
| ====UK monetary policy====
| | |
| | |
| In recent years the primary objectives of UK monetary policy have been 'stable prices' and confidence in the currency, collectively known as 'monetary stability'.
| |
| | |
| 'Stable prices' are defined by the UK government's inflation target, currently 2% per annum as measured by the UK Retail Prices Index (RPI).
| |
| | |
| | |
| Responsibility for setting monetary policy - to achieve monetary stability - rests with the Bank of England's Monetary Policy Committee (MPC).
| |
|
| |
|
|
| |
| Monetary policy in the UK has usually operated through setting the Bank of England's interest rate, the Official Bank Rate, or 'Bank Rate'.
| |
|
| |
| This rate is often referred to as the 'Bank of England Base Rate'.
| |
|
| |
|
| |
| ====Quantitative easing in the UK ====
| |
|
| |
| In 2009 the MPC announced that in addition to setting Bank Rate, it would start to inject money directly into the economy by purchasing financial assets – often known as quantitative easing.
| |
|
| |
|
| |
| == See also ==
| |
| * [[Bank of England]]
| |
| * [[Discount rate]]
| |
| * [[Financial Policy Committee]]
| |
| * [[Fiscal policy]]
| |
| * [[Interest rate]]
| |
| * [[Keynesianism]]
| |
| * [[Monetary Policy Committee]]
| |
| * [[Money supply]]
| |
| * [[Open market operations]]
| |
| * [[Quantitative easing ]]
| |
| * [[Reserve requirements]]
| |
| * [[Retail Prices Index]]
| |
| * [[Supply side policy]]
| |
| * [[ZLB problem]]
| |
