КАКО ПРЕПОЗНАТИ ПОЛИТИКУ ЦЕНТРАЛНЕ БАНКЕ
How to Identify Central Bank Policy

Summary/Abstract: Inflation is increase of prices in a economy. It is smaller or larger economic problem in all countries. Considering the fact that inflation is caused by a number of negative changes in society, maintaining low inflation is an objective of economic policy holders around the world. In most cases, the cause of high or long-term inflation is the same - increase of a money amount in circulation. When a government creates a large amount of national money, it devaluates. When a central bank decide to change money supply, it can be achieved through: open market operations, change of reserve requirements, and escount rate changes. By monitoring the activities of a central bank, we can identify its current policy, which can be expansive and at the same time inflationary, or restrictive, which suppresses the inflation.

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