Monetary Policy

Monetary Policy
The main objectives of macroeconomic policies, in general, and monetary policies, in particular, are price stability, economic growth and a favorable employment level. Since it is hard for policy makers to achieve the ultimate goal directly, therefore, determining intermediate objectives and introducing appropriate instruments are deemed necessary. In case of monetary policy, the issue of setting an intermediate objective is often reflected in controlling rate of return and money supply. With the monetary policy aimed at controlling monetary aggregates, attempts are made to prevent monetary expansion, incompatible with liquidity and inflation targets set in the development plans, and to finance productive and investment sectors.

Highlights

	Monetary Policy Instruments in Iran Two different monetary policy instruments are being utilized: direct instruments (with no reliance on market conditions) and indirect instruments (market-oriented). more...
	Banking System and the FYDP The FYDP is a package of articles, policies, and guidelines covering sectoral and intrasectoral areas and provides a comprehensive framework for resolving structural impediments and economic difficulties during the Plan period. more...