Tools of monetary policy:The Central Bank can execute two types of monetary policy, in line with the real situation of the money economy, it is the policy of monetary loosening and tightening monetary policy.Loosening monetary policy: Is the provision of more money for the economy, to encourage investment in development of production, create jobs.Tightening monetary policy: Is the reduction of money supply to the economy to investment restrictions, prevent the growth momentum of the economy is too check out the inflation mechanism.
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