Strategies for Developing Monetary Policy in Emerging Countries

Abstract

Monetary policy is a primary element of economic policy, as with its help central banks can act and influence both the demand and supply of money in the economy. The main purpose of monetary policy measures is to ensure price stability, effective control over inflation, as well as the stability of the national currency. A very important aspect to highlight about the European Central Bank is that the objective of monetary policy aims at the strategy of maintaining price stability and the inflation rate at lower levels. Any decision is the product of a procedure that involves the assembly of a large number of primary information. The monetary policy decision is also subordinated to these procedures, but simple information, regardless of its degree of organization and hierarchical processing, does not seem to be sufficient to be able to make a decision.

Keywords

• monetary policy
• european monetary integration
• financial stability
• price stability
• inflation targeting
• emerging economy
• european central bank (ecb)
• convergence process