What Are the Different Types of Macroeconomic Policies?
Under the conditions of a market economy, the fiscal and monetary policies used by the state to regulate the economy will affect the speed of economic growth and the economic benefits of enterprises, and then affect the securities market.
Macroeconomic Policy Analysis
Right!
- Under the conditions of a market economy,
- Monetary policy is the basic policy and guidelines for the management of money supply and currency circulation organizations formulated by the government to achieve certain macroeconomic goals. Its regulatory function is mainly reflected in: maintaining the balance between total social supply and total demand by regulating the total supply of money; controlling inflation by regulating the interest rate and the total amount of money; adjusting the proportion of consumption and savings in national income; and guiding the conversion of savings to investment And realize the reasonable allocation of resources.
- The tools of monetary policy can be divided into general policy tools (including statutory deposit reserve ratio, rediscount policy, open market business) and optional policy tools (including direct credit control, indirect credit guidance, etc.). If market prices rise, demand is excessive, and the economy is prosperous, it is considered that total social demand is greater than total supply. The central bank will adopt a monetary tightening policy to reduce demand. On the contrary, the central bank will adopt loose monetary policy measures to increase demand.
- -Statutory deposit reserve policy. The central bank adjusts the deposit reserve ratio paid by commercial banks, changes the currency multiplier, controls the credit creation ability of commercial banks, and ultimately affects the market's money supply. If the central bank raises the deposit reserve ratio, it will reduce the money supply, increase market interest rates, reduce investment and consumer demand, have a negative impact on the company's operations, and the company's stock price will tend to fall.