5 thoughts on “What does a loose monetary policy mean”
Renee
Loose currency policy () In general, it is to increase market currency supply, such as direct issuance of currency, buying bonds in the open market, reducing the reserve ratio and loan interest rate. Enterprises and individuals that require loans to be more pronounced are more likely to loans. Generally, the economy can develop faster. It is a measure to promote prosperity or resist recession. For example, a large amount of credit released by the central government is the performance of loose monetary policy. The monetary policy is the financial policy, which refers to the general term for central banks to control and regulate monetary supply and credit policies and measures to achieve its specific economic goals. The essence of monetary policy is that the state's supply of currencies has adopted different policy trends such as "tight", "loose" or "moderate" according to the economic development of different periods. Make in various tools to adjust currency supply to adjust market interest rates. The changes in market interest rates affect private capital investment, affecting total demand to affect various policies and measures that affect the operation of macroeconomic operations. The four major tools for regulating the total monetary policy are the statutory reserve ratio, open market business and discounted policies, and benchmark interest rates.
Implement positive fiscal policies and moderate loose monetary policies to further strengthen and improve macro -control. Taking reversing the decline in economic growth as the most important goal of macro -control, further enhance the forward -looking, resilience and practical effects of macro -control, and fully support economic growth.
The combination of fiscal expenditure and structural tax reduction.
1. Increase the scale of central fiscal deficit and the issuance of government bonds. In 2009, it was planned to arrange a central fiscal deficit budget of 750 billion yuan, an increase of 570 billion yuan over the previous year's budget; the scale of government bond issuance was increased accordingly.
2. Reduce the burden of taxes and fees of enterprises and residents. Implement policies such as small and medium -sized enterprises, real estate transactions related tax discounts and export tax refund, and uniformly cancel and suspend 100 administrative fees.
3. Optimized fiscal expenditure structure. Continue to increase support for improving people's livelihood, infrastructure, post -disaster reconstruction and other fields, strictly control general expenditure, compress the expenditure of official car purchase, conference funds, official reception expenses, and abroad (border) funds. Strictly control the construction of the building and hall of party and government organs.
Penging the positive role of monetary policy in promoting economic growth.
1. Promoting the reasonable growth of the total amount of money in monetary credit. Actively use various monetary policy tools to maintain sufficient liquidity of banking systems. Guide commercial banks to rationally increase credit investment and guide the healthy development of private financial finance.
2. Optimized credit structure. Adhere to different treatments, have pressure and pressure, increase the livelihood project, "agriculture, rural areas", major infrastructure construction, SMEs, independent innovation, technical transformation and mergers and reorganization, energy conservation and emission reduction, regional coordinated development, expanding consumption, post -disaster recovery and reconstruction Credit support in equal. Support reasonable financing needs of real estate development enterprises.
3. Maintain the stable and healthy development of the capital market. Improve the basic system of the capital market and enhance investor confidence.
4. Improve the level of risk management of financial institutions, promote the construction of a financial system security network, and prevent systemic financial risks.
5. The RMB exchange rate is basically stable. In 2009, the general currency supply was expected to increase by about 17%.
In general, the loose monetary policy is to increase market currency supply. Specific policy tools are: 1. Reduce the deposit reserve rate. Make commercial banks reduce the deposit reserves paid and increase loan -available funds. 2. Reduce the discount rate. When the commercial bank is discounted to the central bank, you can get more funds and increase the loan -available funds 3. . Relax credit conditions and scale. Under the loose monetary policy, the market currency supply increases, the cost of use of corporate funds is reduced, the profit increases. The monetary policy that promotes economic development under the situation of lack of domestic economy.
We are talking about the popular point. The loose monetary policy means that there are quite a few circulation currencies in the real economy. One more money, it's hair. The price of other items will rise. If the wages of ordinary people do not rise, they can only buy less things, and the quality of life will decrease. At the end of 2008, since my country began to implement loose monetary policy, prices including house prices, food prices, and meat prices began in 2009, but their wages were basically not moving, so complaints in society were increasing. The central government is also aware of this problem, and it is currently tightening monetary policy at a small step.
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Loose currency policy () In general, it is to increase market currency supply, such as direct issuance of currency, buying bonds in the open market, reducing the reserve ratio and loan interest rate. Enterprises and individuals that require loans to be more pronounced are more likely to loans. Generally, the economy can develop faster. It is a measure to promote prosperity or resist recession. For example, a large amount of credit released by the central government is the performance of loose monetary policy.
The monetary policy is the financial policy, which refers to the general term for central banks to control and regulate monetary supply and credit policies and measures to achieve its specific economic goals. The essence of monetary policy is that the state's supply of currencies has adopted different policy trends such as "tight", "loose" or "moderate" according to the economic development of different periods.
Make in various tools to adjust currency supply to adjust market interest rates. The changes in market interest rates affect private capital investment, affecting total demand to affect various policies and measures that affect the operation of macroeconomic operations. The four major tools for regulating the total monetary policy are the statutory reserve ratio, open market business and discounted policies, and benchmark interest rates.
Implement positive fiscal policies and moderate loose monetary policies to further strengthen and improve macro -control. Taking reversing the decline in economic growth as the most important goal of macro -control, further enhance the forward -looking, resilience and practical effects of macro -control, and fully support economic growth.
The combination of fiscal expenditure and structural tax reduction.
1. Increase the scale of central fiscal deficit and the issuance of government bonds. In 2009, it was planned to arrange a central fiscal deficit budget of 750 billion yuan, an increase of 570 billion yuan over the previous year's budget; the scale of government bond issuance was increased accordingly.
2. Reduce the burden of taxes and fees of enterprises and residents. Implement policies such as small and medium -sized enterprises, real estate transactions related tax discounts and export tax refund, and uniformly cancel and suspend 100 administrative fees.
3. Optimized fiscal expenditure structure. Continue to increase support for improving people's livelihood, infrastructure, post -disaster reconstruction and other fields, strictly control general expenditure, compress the expenditure of official car purchase, conference funds, official reception expenses, and abroad (border) funds. Strictly control the construction of the building and hall of party and government organs.
Penging the positive role of monetary policy in promoting economic growth.
1. Promoting the reasonable growth of the total amount of money in monetary credit. Actively use various monetary policy tools to maintain sufficient liquidity of banking systems. Guide commercial banks to rationally increase credit investment and guide the healthy development of private financial finance.
2. Optimized credit structure. Adhere to different treatments, have pressure and pressure, increase the livelihood project, "agriculture, rural areas", major infrastructure construction, SMEs, independent innovation, technical transformation and mergers and reorganization, energy conservation and emission reduction, regional coordinated development, expanding consumption, post -disaster recovery and reconstruction Credit support in equal. Support reasonable financing needs of real estate development enterprises.
3. Maintain the stable and healthy development of the capital market. Improve the basic system of the capital market and enhance investor confidence.
4. Improve the level of risk management of financial institutions, promote the construction of a financial system security network, and prevent systemic financial risks.
5. The RMB exchange rate is basically stable. In 2009, the general currency supply was expected to increase by about 17%.
In general, the loose monetary policy is to increase market currency supply. Specific policy tools are:
1. Reduce the deposit reserve rate. Make commercial banks reduce the deposit reserves paid and increase loan -available funds.
2. Reduce the discount rate. When the commercial bank is discounted to the central bank, you can get more funds and increase the loan -available funds
3. . Relax credit conditions and scale.
Under the loose monetary policy, the market currency supply increases, the cost of use of corporate funds is reduced, the profit increases. The monetary policy that promotes economic development under the situation of lack of domestic economy.
We are talking about the popular point. The loose monetary policy means that there are quite a few circulation currencies in the real economy. One more money, it's hair. The price of other items will rise. If the wages of ordinary people do not rise, they can only buy less things, and the quality of life will decrease. At the end of 2008, since my country began to implement loose monetary policy, prices including house prices, food prices, and meat prices began in 2009, but their wages were basically not moving, so complaints in society were increasing. The central government is also aware of this problem, and it is currently tightening monetary policy at a small step.
00:00 / 02: 4970% shortcut keys to describe space: Play / suspend ESC: exit full screen ↑: increase volume 10% ↓: reduced volume decrease by 10% →: single fast forward 5 seconds ←: single fast retreat 5 seconds Press hold down and hold it up. Here you can drag no longer appear in the player settings to reopen the small window shortcut key description