HOW THE CENTRAL BANK USES DIFFERENT TOOLS TO COMBAT INFLATION

HOW THE CENTRAL BANK USES DIFFERENT TOOLS
TO COMBAT INFLATION

The Central Bank contributes to economic stability when it uses monetary policy and banking reforms against storms such as inflation.

Stability is both political and economic: it ranges from peace and order, internal and external security, and a functioning justice system to minimal movements in prices, interest rates, and exchange rates. Growth is the continuing and sustainable rise in output, income and employment. And equity is the widening of the sharing of the fruits of growth, with preferential attention to the poor.

Growth is the business of the private sector working in a free market, with the government supporting it with basic services, infrastructure, and a sound policy and regulatory environment.

Equity results from a whole host of factors, including the efficiency of the investment and labor markets, the profile of investments made, the structure of investment incentives, the pattern of gove...