tailieunhanh - Review of 2011 monetary policy and orientations for 2012

The economic goals for the next few years such as macroeconomic stabilization, enhancement of economic growth quality, and unpredictable changes in the global economy remain challenges to the implementation of SBV monetary policy. | 8 | Nguyễn Thị Hồng Review of 2011 Monetary Policy and Orientations for 2012 Review of 2011 Monetary Policy and Orientations for 2012 NGUYỄN THỊ HỒNG* ABSTRACT Monetary policy is one of macroeconomic policies, by which the central bank controls and regulates money supply or interest rates to stabilize prices, attain economic growth, and create employment. In 2011, global economic instabilities and intrinsic problems of the domestic economy challenged the operation of macroeconomic policies in general and the monetary policy of the SBV in particular. As a state authority of currency and banking activities, the bank has attained some achievements by implementing strictly and cautiously the monetary policy, which contributes to the realization of general macroeconomic targets prioritized for inflation restriction, macroeconomic stabilization, and social welfare. The economic goals for the next few years such as macroeconomic stabilization, enhancement of economic growth quality, and unpredictable changes in the global economy remain challenges to the implementation of SBV monetary policy. Keywords: monetary policy implementation, inflation, macroeconomic stabilization, SBV. 1. INTRODUCTION The year 2011 saw the world economy continue its uneven recovery with two opposing trends. Developed countries – age-old flagships of economic growth – including the ., the Eurozone, and Japan had a slow and difficult recovery while emerging and developing economies are clearly demonstrating their leading role, contributing up to three quarters of the world’s economic growth. Despite making some recovery, the global economy is still facing uncertainties that can cause widespread instabilities. Not only did the public debt crisis occur complicatedly in the Eurozone, but it was also a common problem to many big countries like the ., Japan and China. Stagflation runs a risk of reoccurrence when many countries are struggling with inflation returning to the high of 2008 and the

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