Monetary policy in Egypt introduction Considers monetary policy a form of stabilization policies to produce state-of-order to fight economic imbalances various Therefore, monetary policy requires a degree from coordination with other policies and there reduces the effectiveness of monetary policy in cases of depression and the imbalance between demand and supply of goods and services, what is said about monetary policy does not stand in front of the effectiveness of pilgrimage Monetary policy is the process by which monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowin Monetary policy is referred to expansionary or contractionary, expansionary policy increases the total supply of money in the economy more rapidly than usual contractionary policy expands the money supply more slowly than usual. Monetary policy types 1. The inflation target
The inflation target is achieved through periodic adjustments to the Central Bank interest rate target. The interest rate used is generally the overnight rate at which banks lend to each other overnight for cash flow purposes. Depending on the country this particular interest rate might be called the cash rate or something similar.
The interest rate target is maintained for a specific duration using open market operations. Typically the duration that the interest rate target is kept constant will vary between months and years. This interest rate target is usually reviewed on a monthly or quarterly basis by a policy committee.
The importance