Rahapoliitikas

Rahapoliitikas refers to the policies and actions undertaken by a country's central bank or monetary authority to manage the money supply and credit conditions to stimulate or restrain economic activity. The primary goals of monetary policy typically include maintaining price stability, fostering full employment, and promoting moderate long-term interest rates.

The main tools used in monetary policy are open market operations, the discount rate, and reserve requirements. Open market operations involve the central bank buying or selling government securities to influence the amount of money in circulation. When the central bank buys securities, it injects money into the economy, potentially lowering interest rates and encouraging borrowing and spending. Conversely, selling securities withdraws money from circulation, which can lead to higher interest rates and slower economic growth.

The discount rate is the interest rate at which commercial banks can borrow money directly from the central bank. A lower discount rate makes it cheaper for banks to borrow, potentially leading to increased lending. A higher discount rate has the opposite effect. Reserve requirements dictate the proportion of deposits that banks must hold in reserve, rather than lending out. Lowering reserve requirements allows banks to lend more, while raising them restricts lending.

Monetary policy can be expansionary, aiming to boost economic growth and reduce unemployment, often by lowering interest rates and increasing the money supply. It can also be contractionary, intended to curb inflation by raising interest rates and reducing the money supply. The effectiveness and appropriate stance of monetary policy are subjects of ongoing debate among economists.