What is the monetary policy of the central bank?

The four major goals of the central bank's monetary policy are to stabilize prices, achieve full employment, promote economic growth and balance the international balance of payments.

1. Price stability The essence of price stability is the stability of currency value.

Stabilizing prices is a relative concept, which means controlling inflation so that general price levels do not fluctuate sharply in the short term.

2. Full employment The so-called full employment goal is to maintain a high and stable level.

Under the condition of full employment, all workers who are capable and willing to participate can find suitable jobs at any time under reasonable conditions.

Full employment refers to the utilization of all available resources.

Generally, the employment level of the labor force is used as the benchmark, that is, the unemployment rate index is used to measure the employment level of the labor force.

3. Economic growth The so-called economic growth means that the growth of gross national product must maintain a reasonable and relatively high speed.

The indicators for measuring economic growth in various countries generally use the annual growth rate of real gross national product per capita, that is, the annual growth rate of real gross national product per capita after deducting the price increase rate from the annual growth rate of nominal gross national product per capita.

4. Balance the balance of payments. According to the definition of the International Monetary Fund, the balance of payments is a statistical table of a country's foreign economic transactions in a certain period. It shows: (1) The exchange of goods and services between a certain economy and the rest of the world.

and income transactions; (2) Changes in the economy’s monetary gold, special drawing rights, and ownership of claims and debts to other parts of the world; (3) In an accounting sense, balance cannot offset each other

Free transfers and corresponding items required for any accounting of the above transactions and changes.