Defination
Monetary policy is policy that concern with financial tools that are Money supply, exchange rate and interest rate. Can do by adjust down or add up quantity of money in economic system which it is responsibility of Bank of Thailand (or Central Bank) in manage direction of conduct monetary policy.
Why must have monetary policy?
Same as the central bank of other country in the rest of the world, that they will implement follow monetary policy for keep stability of economic and support expanding of economic. That is when bad economic or recession there are a lot of unemployment rate and implement explanation monetary policy. It will help to adaptation of economic when there is a lot of inflation cause from high explanation of economic and it will cause amount of production more than the need of consumption. It may made bad effect to the economic in the future because of more goods in the market and it can’t sell in the previous time. Monetary policy will implement in Expansionary monetary policy and Contractionary monetary policy for reduce peaking of those economic situation.
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