- "Governments interacting with the economy": Research the monetary and fiscal policies of UK and Russia.
- Russia:
First, their Main auction based operations are REPO auctions and deposit auctions. The purpose of REPO auctions and deposit auctions are steering money market rates. REPO means repurchase agreement.
Second, overnight standing facilities are overnight loans;FX swaps; Lombard loans; REPOs;loans secured by non-marketable assets or guarantees; loans secured by gold; deposit operations. The purpose of Overnight loans are restricting the fluctuation range of money market rates with the borders of the interest rate corridor.
Third, Fine-tuning operations have same instrument with main auction-based operations. The purpose is to prevent excessive fluctuations of money market rates within the interest rate corridor.
- UK: For United Kingdom, they mostly trying to maintain little amount of inflation out of high inflation is main goal of their economy.
- First cause of resolution from Monetary Policy Committee is to allow inflation to deviate from the target temporarily so that economy don’t cause undesirable volatility in output. MPC announced to retain a flexible inflation targeting system by sales.Second, gov.uk simply explains that reaffirmed the 2 per cent inflation target, which applies at all times, I think second cause means their goal percentage of inflation is 2%. For 2% of inflation, MPC choose which product to stay on their price and which product need to get inflation. Overall mood for UK at 2013, 2012, they had huge inflation, which make MPC to mainly focus on stability of inflation by sell some governmental bonds.
Third, clarified how existing flexibilities in the remit should be explained, allowing for a primacy of price to stay on their price and the inflation target.
- How does each government try to manipulate the economy?
-UK, they mainly try to manipulate by control market’s inflation so that their country to get stable inflation by 2%. For Russia, they try to manipulate the economy by REPO auction.
Does each country have a central bank?
-Yes, they do have.
Have the policies they've implemented proven successful?
-For UK, yes, they did. However, for Russia, they didn’t have fully successful. They only had succeed to achieve sub cause 2, and 4.
Do people in these countries support or oppose the government policies?
-They support the government policies. For UK, and Russia.
First, their Main auction based operations are REPO auctions and deposit auctions. The purpose of REPO auctions and deposit auctions are steering money market rates. REPO means repurchase agreement.
Second, overnight standing facilities are overnight loans;FX swaps; Lombard loans; REPOs;loans secured by non-marketable assets or guarantees; loans secured by gold; deposit operations. The purpose of Overnight loans are restricting the fluctuation range of money market rates with the borders of the interest rate corridor.
Third, Fine-tuning operations have same instrument with main auction-based operations. The purpose is to prevent excessive fluctuations of money market rates within the interest rate corridor.
Third, clarified how existing flexibilities in the remit should be explained, allowing for a primacy of price to stay on their price and the inflation target.
-UK, they mainly try to manipulate by control market’s inflation so that their country to get stable inflation by 2%. For Russia, they try to manipulate the economy by REPO auction.
Does each country have a central bank?
-Yes, they do have.
Have the policies they've implemented proven successful?
-For UK, yes, they did. However, for Russia, they didn’t have fully successful. They only had succeed to achieve sub cause 2, and 4.
Do people in these countries support or oppose the government policies?
-They support the government policies. For UK, and Russia.