Monetary policy together with fiscal policy is one of the two ways in which government authorities influence in a market economy the rhythm and direction of economic activity, with effects not only on the level and variation of gross domestic product, but on the rhythm and intensity of change the general level of prices. Efficiency of central banks to leading monetary policy result from monopoly position they hold regarding their own counterparties offer money that banks require to constitute legal reserves or settle with other commercial banks in order currency and credit to be used in daily transactions taking place in the economy
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