Central Bank's Monetary Policy Instruments Optimized for Maximum Impact
The Central Bank uses different tools to control the economy, and they need to choose these tools carefully to achieve their goals effectively. They have specific benchmarks to guide them in selecting the right tools, including theoretical and empirical benchmarks. The theoretical benchmarks are divided into internal and external benchmarks, with internal benchmarks being the most important for daily operations. These internal benchmarks include initiative, fine-tuning, signal-functioning, timeliness, and operability benchmarks.