If you were to survey central bankers from around the world and ask them what they believe the primary task of monetary policy should be, what would the most popular answer likely be

Respuesta :

Most likely open market operations as it’s the most important tool of monetary policy

The most popular answer would likely be fighting inflation.

Monetary policy is one of the policies use by central bank to control or regulate the supply of money in an economy inorder to achieve sustainable economic growth.

We know that excess supply of money in circulation would cause inflation; hence bring about increase in the price of goods and services. Inadequate supply of money would also case deflation in an economy.

It therefore means that the primary task of monetary policy  (By buying or selling government securities (usually bonds), the Fed—or a central bank) should be fighting inflation.

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