Okoth Douglas

Okoth Douglas

Functions of Money

Money is defined as anything performing monetary functions. It must also be generally acceptable to every member of society. money has a value to individual X only when he thinks that individual Y will accept it in exchange for goods…

Conflicting Objectives of Monetary Policy

Some of the objectives of monetary policy seem to be conflicting and mutually contradictory Full Employment and Balance of Payment Equilibrium – Similarly while maximizing domestic employment and economic growth, a balance of payment deficit is bound to emerge. With…

Objectives of Monetary Policy

It is important to understand the distinction between objectives or goals, targets and instruments of monetary policy Goals   of monetary policy refer to the objectives (price stability, economic growth or full employment) while targets refer to variables such as the…

Monetary Policy and its instruments

Monetary policy is one of the public interventionist measures aimed at influencing the level and pattern of economic activity so as to achieve desired goals. It covers all the actions by the Central Bank which influence the quantity, cost and…

5 Roles of the Central Bank

A central bank is an authority responsible for policies that affect a country’s supply of money and credit. The central bank uses its tools of monetary policy to affect short term interest rates and the monetary base in order to…