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Monetary policy has two types: extended monetary policy and monetary policy tightening. Depending on the operating situation of the economy and the macro-economic objectives were set out in each period of development of the social economy that the Central Bank may perform one of the two policies. Monetary policy expansion: essentially the Central Bank in the money supply levels in the broad economy, making interest rates reduced through which increase the total demand, so that economies of scale are expanding, income increase and the unemployment rate rising. To expand the money supply, monetary policy expansion, the Central Bank may be done one of three ways: buy-in on the stock market, lower the reserve requirement ratio, the lower the interest rate discount, or both at the same time or three ways at the same time. When done tightening monetary policy, the Central Bank aims to reduce the impact on the level of the money supply in the economy, making the market interest rates increase. Through it, it was a total collapse of the bridge, making the overall price down. Enforcement of this policy, the Central Bank uses measures to reduce the level of the money supply by: sold on the stock market, increase the level of compulsory reserves, or to increase the interest rate discount, strict controls with regard to the activities of credit ... Usually tighten monetary policy is applied when the economy growth is too high, the economy is in bad "too hot", inflation is at risk of exploding. By contrast extended monetary policy is applied when the economy recession or growth too low
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