The destiny of the dollar, the euro, the yuan and the colonIn order to reduce the effects of the economic slow down, some politicians are turning to monetary policy or the Central Bank. They believe that by printing more money there will be more wealth, more investment and more employment.Friday, September 26, 2008 When a Central Bank, such as the US Federal Reserve (FED) or the European Central Bank, increases the amount of money in circulation it is done by reducing interest rates. This excess liquidity is channeled firstly towards the financial system, causing an excess in credit which forces the financial institutions to reduce or relax credit requirements for its clients in order to reduce its monetary reserves caused by the excess liquidity that was created by the Central Bank policy of "easy money". Nonetheless, this "easy money" policy cannot be maintained because printing more money can NEVER generate greater wealth. All excess liquidity eventually translates into a "bubble", or a increase in the rate of inflation, or both. Source: Instituto Libertad ¿Busca soluciones de inteligencia comercial para su empresa?Guatemala: Prime Rate Drops to 2.25%March 2020 Arguing that the impact of covid-19 will be significant in the context of global and local economic slowdown, the Central Bank decided to lower the leading interest rate of monetary policy by 50 basis points, from 2.75% to 2.25%. Costa Rica: Monetary Policy Rate Drops to 2.25%January 2020 Arguing that in 2020 and 2021 inflation is expected to remain within the target range, although below its average value of 3%, the Central Bank reduced the monetary policy rate from 2.75% to 2.25%. Costa Rica: Investment Guide 2009April 2009 If we are to maintain growth and profitability in our portfolios, we should be much more aggressive in the types of instruments for investment. Basic rate goes up to 11.25% in Costa RicaNovember 2008 The rate increase of half a percentage point, effective today, bring the interest rate to 11.25% until November 26, the Central Bank reported.
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