Economics Policies
- Submitted by: Sharmaine
- Views: 241
- Category: Politics: Economics
- Date Submitted: 08/03/2014 03:42 AM
- Pages: 3
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Introduction
The government formulates economics policies to achieve growth and development. Thre are Three types of Economics polocies. These are Monetary Policy, Fiscal Policy and Trade policy.
Monetary Policy
Monetary policy is concerned with managing the amoun of money in circulation. Monetary policies may lead to increasingng or decreasing th e volumeo of money supply in circulation. There are several a ways by which the amount of money can be changed.
These include the following:
1. Increasing or decreasing the interest rates
2. Increasing or decreasing the reserve requirements
3. Increasing or decreasing the rediscounts rates
4. Buying or selling the government bonds
Money supply refers to money in circulation. It includes currency in circulation (Paper money and coins issued by the Central Bank), checking accounts (checks), savings and time deposits. Money is used as a medium of exchange, store of value and unit of account.
Monetary Theory
Monetary theory is simply the theory of the value of money. The value of money refers to its purchasing power. There is a popular monetary theory which is the quantity theory of money of money of the classical economist. Such theory explains that’s:
MV=PQ
M is the quantity of money or money supply
Q is the number of goods and services
P is the average price level of goods and services
V is the income velocity of money or the number of times money is spent in one year.
Central Bank and Bangko Sentral ng Pilipinas
Central Bank
A central bank is the central monetary authority which provides monetary policy that cover the areas of money, credit, and banking.
Central banking in the philippines started during the term of President Elpidio Quirino where
The Central Bank Act(R.A. No. 265) was signed into law on 15 June 1948 inaugurating the Central bank of the philippines(CBP).
President Ferdinand Marcos signed Presidensial Decree(PD) No. 72 that widened the scope of the...
The government formulates economics policies to achieve growth and development. Thre are Three types of Economics polocies. These are Monetary Policy, Fiscal Policy and Trade policy.
Monetary Policy
Monetary policy is concerned with managing the amoun of money in circulation. Monetary policies may lead to increasingng or decreasing th e volumeo of money supply in circulation. There are several a ways by which the amount of money can be changed.
These include the following:
1. Increasing or decreasing the interest rates
2. Increasing or decreasing the reserve requirements
3. Increasing or decreasing the rediscounts rates
4. Buying or selling the government bonds
Money supply refers to money in circulation. It includes currency in circulation (Paper money and coins issued by the Central Bank), checking accounts (checks), savings and time deposits. Money is used as a medium of exchange, store of value and unit of account.
Monetary Theory
Monetary theory is simply the theory of the value of money. The value of money refers to its purchasing power. There is a popular monetary theory which is the quantity theory of money of money of the classical economist. Such theory explains that’s:
MV=PQ
M is the quantity of money or money supply
Q is the number of goods and services
P is the average price level of goods and services
V is the income velocity of money or the number of times money is spent in one year.
Central Bank and Bangko Sentral ng Pilipinas
Central Bank
A central bank is the central monetary authority which provides monetary policy that cover the areas of money, credit, and banking.
Central banking in the philippines started during the term of President Elpidio Quirino where
The Central Bank Act(R.A. No. 265) was signed into law on 15 June 1948 inaugurating the Central bank of the philippines(CBP).
President Ferdinand Marcos signed Presidensial Decree(PD) No. 72 that widened the scope of the...