关闭

关闭

关闭

封号提示

内容

首页 how to fight inflation.PDF

how to fight inflation.PDF

how to fight inflation.PDF

刀疤杰 2011-02-23 评分 0 浏览量 0 0 0 0 暂无简介 简介 举报

简介:本文档为《how to fight inflationpdf》,可适用于经济金融领域,主题内容包含HowtofightinflationIntroductionFactsheetNointhisseriesindicatesthatinflati符等。

HowtofightinflationIntroductionFactsheetNointhisseriesindicatesthatinflationisaprocessofcontinuousincreaseinthegeneralpricelevel,andthatinflationisbadfortheeconomyandforthegeneralpublicHowdoyoustopinflationOneapproachtostopinflationwouldbetofreezeallpricesManycountrieshaveattemptedthisoverthecenturiesForexample,intheyear,theRomanemperorDiocletianfrozeallpricesandwagesandmadetheinfringementofthisedictpunishablebydeathInspiteofsomeexecutions,inflationwasnotcontainedEventuallythislawagainstpriceandwageincreaseswasrepealedLaterattemptsatdirectlycontrollingpriceincreasesalsofailedbecauseallthesecontrolsaddressedthesymptoms,butnotthecauseWhattriggerspriceincreasesPriceincreasescanbetriggeredbymanydevelopments,suchas:•anincreaseininternationaloilprices•afallintheexchangerate•anationwideexcessivesalaryandwagehikeor•anincreaseinfoodpricescausedbyadroughtWhatsustainsinflationForacontinuousriseinthegeneralpricelevel,themoneysupplyhastokeeponexpandingOnlywith"toomuchmoneychasingtoofewgoods"canthegeneralpricelevelcontinuetoincreaseGraphclearlyillustratesthathighratesofgrowthinthemoneysupplyinSouthAfricainthepastwenthandinhandwithhighratesofinflationTheonlyeffectivewaytocontaininflationinthelongrunisthereforetorestrictthegrowthinthemoneysupplyThelikelyrateofincreaseinthequantityofgoodsandserviceswhichcanbemaintainedwithoutinflationarypressuresisusuallyrelatedtomorelabour,entrepreneurshipandcapitalgoods,andbetterskills,managementandtechnologyGrowthinthemoneysupplyshouldaccordinglybelinkedtosustainablegrowthinproductionPreventingexcessivemoneysupplygrowthisthereforeacrucialelementincombatinginflationButhowisthisdoneGraph:MoneysupplygrowthandinflationinSouthAfricaMoneysupplygrowthandinflationinSouthAfricaPercentagechangeoveroneyearyearmovingaverageMoneysupplygrowthInflationPreventingexcessivemoneysupplygrowthThebanksinSouthAfricaareusuallyindebtedtotheSouthAfricanReserveBank(theBank)AlthoughtheamountoffundswhichtheyborrowfromtheBankissmallcomparedtotheamountoffundswhichtheyobtainintheformofdeposits,theirborrowingfromtheBankisimportantThisisbecausetheBankistheonlysupplieroflegaltender–notesandcoin–totheeconomyThetermsandconditionsunderwhichtheBankiswillingtosupplycashtothebanksareimportantfactorswhenthebankssettheirinterestratesTheBanklendscashtothebanksataninterestratedeterminedbytheBank'sMonetaryPolicyCommitteeThisinterestrateiscalledtheBank'srepurchaserate,orreporateforshortBankssettheirdepositinterestratessomewhatbelowandtheirlendingratessomewhatabovethereporateThroughthereporate,theBankindirectlyhasastronginfluenceonalltheshortterminterestratesinthebankingsystemIftheBank'sanalysisshowsthatinflationisgoingtobehigherthantheinflationtargetsetbythegovernment,ithastoputabrakeontheinflationprocessThisisdoneinthefollowingway:•TheBankraisesthereporate•Banksthereafterusuallyraisetheirlendinganddepositrates•Whenpeoplefacehigherlendingrates,theybuyfewergoodsoncredit•Thiscauseslesscredittobeusedandlessmoneyendingupwithshopkeepers•Withlessmoney,creditandexpenditureintheeconomy,itbecomesmoredifficulttoraisepricesandwages•Therefore,inflationisreducedConversely,iftheBank'sreadingoftheeconomyindicatesthatinflationisgoingtofallbelowtheinflationtarget,itwouldreducethereporateandthiswouldreversethesequencedescribedaboveAsaruleofthumb,lendingratesmustbesignificantlyhigherthantheinflationrateifexcessivecreditgrowthandmoneysupplygrowtharetobepreventedInadditiontothereporate,theBankcanalsoinfluencethebanks'abilitytolendoutmoneybyusinginstrumentssuchasopenmarketoperations(iebuyingandsellingfinancialassetsintheopenmarket)andcashreserverequirements(ierequiringthebankstodepositpartofthefundstheyreceivefromthepublicwiththeReserveBank)Althoughinflationcanonlybesustainediftheamountofmoneyinthecountryisrisingexcessively,theReserveBank'staskcanbemadeeasierbyboththegovernmentandthepublicMonetarypolicywillbemoreeffectiveifitissupportedbyfiscaldiscipline,ieifthegovernmentdoesnotoverspendorrapidlyrunupitsdebtInflationarypressureswillalsobealleviatedifthegeneralpublicworksharderandsmarter,ieifanimprovementinproductivityraisesthequantity(orquality)ofthegoodsandservicesproducedBottomlineCombatinginflationrequiresthepreventionofexcessivemoneysupplygrowthInturn,thisrequirestheprivatesectorbankstomaintaininterestratesatlevelsthatarehighenoughtopreventexcessivegrowthinbankcreditextensionTothisend,theBanksetsitsrepurchaserateatanappropriatelevelThiswholeprocessofchanginginterestratestoinfluencecredit,moneysupplyandinflationtakestimetoworkthroughthisiswhymonetarypolicyrequirespatienceThisisthethirdinaseriesoffactsheetsontheSouthAfricanReserveBank,compiledbytheResearchDepartment:InformationDivisionanddistributedbytheExecutiveManagementDepartment:CommunicationsUnitAvailable:http:wwwreservebankcozaForfurtherinformationonthecontentortoobtainprintedhardcopies:ClickonthecontactusicontosubmityourrequestToaccessanelectroniccopyofthisfactsheet:ClickonAboutus>FactsheetsThecontentofthisfactsheetissubjecttochangeatanytimeLastupdated:July

用户评论(0)

0/200

精彩专题

上传我的资料

每篇奖励 +1积分

资料评分:

/4
1下载券 下载 加入VIP, 送下载券

意见
反馈

立即扫码关注

爱问共享资料微信公众号

返回
顶部

举报
资料