Monetary policy. Objectives and tools

Monetary policy objectives are classified into final and intermediate. Ultimate goals: (a) Economic growth; b) full-time employment; c) price stability; d) stable balance of payments. Intermediate targets: (a) The money supply; b) interest rate; c) exchange rate. Monetary policy instruments include: a) credit limits;  direct regulation of the interest rate; b) changes in the rate […]

Competitiveness of the company in terms of prices and costs

It happens that a new company with very low prices appears on the market or a competitor sharply reduces the prices of its goods. This does not necessarily mean a policy of dumping (selling large quantities of goods at below-market prices) to capture market share or achieve a certain volume of sales; maybe it just […]