Chapter 1. The main approaches to the regulation of monetary relations

Objectives of the objects and methods of monetary

A set of measures in the field of currency to alter the monetary been called monetary policy.

Its main task: the regulation of economic conditions by influencing the state of the credit and currency.

Monetary policy - part of economic policy aimed at curbing inflation, to maintain the rate of the national currency and the normal conditions of the market. Monetary policy - a tool "fine tuning" of economic conditions. Fundamental objective of monetary policy is to help the economic system to achieve this level of production, which is characterized by full employment and no inflation.

Objectives of monetary policy:

maintaining equilibrium in the money market, the control and regulation of the money supply;

- The fight against inflation in the economy, regulation of the course of national currencies;

regulation of the economic cycle and alignment conditions;

Provision of the real sector of the economy with cheap credit resources.

The main purpose of monetary policy is to maintain low inflation (at 8.6%).

Achieving these goals will be achieved level control of the monetary base, using all available tools from the National Bank.

Monetary policy aimed at stimulating or credit and money creation (credit expansion) or on their control and treatment (credit squeeze).

Amid falling production and rising unemployment central banks are trying to revive the situation by extending credit and lower rates of interest rates. Conversely, the economic rise of the banks are trying to limit their lending, to raise interest rates to restrain the issue of payment of funds.

State regulation of the monetary sphere can be successful only if the government, through the Central Bank, which is the National Bank of Kazakhstan Kazakhstan freely affect the extent and nature of private institutions as well as in developed market economy, they are the basis of all monetary systems. State regulation of the monetary sphere is carried out in several interrelated areas:

State control over the banking system has the purpose of liquidity management of credit and financial institutions, ie, strengthening their ability to timely meet the demands of depositors (by adjusting the discount rate, by changing the reserve ratio).

The government debt is the direction in government regulation, the chronic budget deficits and the huge growth of debt, resulting in dramatically increased impact on state credit loan market. To do this, use different methods of NB government debt: buying or selling government bonds, in various ways makes them more attractive to private investors.

Regulation of credit transactions and money creation. Used primarily to influence economic activity. This direction is closely related to the first and second directions.

Methods of monetary policy - a set of methods and operations, through which the subjects of monetary policy - the National Bank as government monetary and commercial banks as a "conductor" of monetary policy - acting on the object (the demand for money and money supply) in order to achieve their goals. Methods for the everyday monetary policy is also called the tactical goals of monetary policy.

The modern system of methods of monetary policy is as diverse as the very monetary policy. Classification of methods of monetary policy can be conducted on different grounds.

As part of the monetary policy applied methods of direct and indirect regulation of the monetary sphere. Direct methods have the character of administrative action in the form of various directives of the National Bank on the length of the money supply and prices in financial markets. Implementation of these measures provides the most immediate effect in terms of monitoring the price of NB or the maximum amount of deposits and loans, especially in the economic crisis. However, over time the impact of direct methods in the case of "adverse" in terms of economic agents influence their activity can cause overflow, the outflow of financial resources in the "shadow economy" or abroad.

Indirect methods of regulation of the monetary sphere affect the motivation of behavior of economic entities by market mechanisms. Naturally, the efficiency of the use of indirect methods of control is closely related to the degree of development of the money market. In transition economies, especially in the early stages of transformation, using both direct and indirect instruments of phasing out the first second.