The objective of a central bank is to reduce systematic risk in the economic and financial system.

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The objective of a central bank is to reduce systematic risk in the economic and financial system. Specific objectives include:

a. Low and stable inflation.

b. High and stable growth and employment.

c. Stable financial markets and institutions.

d. Stable interest rates.

e. Stable exchange rates.

Because these objectives often conflict, policymakers must have clear priorities.

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Money Banking And Financial Markets

ISBN: 9781260226782

6th Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Mar 21, 2024 05:42 AM

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The objective of a central bank is to reduce systematic risk in the economic and financial system.

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The description outlines the primary objectives of a central bank which typically include a Low and ...View the full answer

Money Banking And Financial Markets

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