StudentShare solutions
Triangle menu

Conduct of Monetary Policy in Kuwait - Essay Example

Not dowloaded yet

Extract of sample
Conduct of Monetary Policy in Kuwait

The International Monetary Fund (IMF) noted: "The fastest pace of economic expansion since the 1990 Gulf war, combined with the oil-related terms of trade gains, has boosted per capita income by 34.5% during 2003-04 and helped build up assets for future generations at a record pace." It added: "With oil prices likely to remain firm over the medium-term, Kuwait's medium-term outlook has improved and is likely to remain favourable, supported by large fiscal and current-account surpluses, and low inflation.
The Kuwait economy is characterized by sound creditworthiness which in turn reflects sustained macroeconomic stability, good governance, twin surpluses (the government budget and current-account), manageable domestic debt (17% of GDP in 2005), the sophisticated banking sector and huge net (official) external assets.
Overall GDP growth has been increasing at a steady rate from 2001 to 2005 due to the stability of the money supply. Through a judicious application of effective open market operations, the central bank was able to mop up excess liquidity in the system resulting in a stable economic growth. The Central Bank of Kuwait (CBK) has imposed a ceiling on the credit to deposit ratio. ...Show more

Summary

Kuwait, the third largest country of the Gulf Cooperation Council (GCC) six-member economies, is in buoyant shape. The removal of a major geopolitical risk from neighbouring Iraq, coupled with recent liberalisation measures have improved business optimism-evident by a surge in private sector investment over the past two years…
Author : maximillian78
Conduct of Monetary Policy in Kuwait Essay essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Conduct of Monetary Policy in Kuwait Essay"
with a personal 20% discount.
Grab the best paper

Related Essays

Monetary Policy
One of the most important functions of the countrie is the regulation of money supply. This is dealt by the monetary policy of that particular country that has its limitations and demand serious attention from not only the policy makers but also the public who would have to follow these policies.
7 pages (1750 words) Essay
Monetary Policy
One of these important functions includes the regulation of money supply in the country. This is dealt by the monetary policy of that particular country that has its limitations and demand serious attention from not only the policy makers but also the public who would have to follow these policies.
3 pages (750 words) Essay
Central Bank Independence and the Conduct of Monetary Policy
Theoretical Underpinnings for Central Bank Independence 7 2.4. Empirical Support for Central Bank Independence 7 2.5. Inflation & Central Bank Independence 8 3. Conclusion 9 4. References 10 5. Bibliography 12 1. Introduction Independence of the Central bank implies that the monetary policymakers are free from direct influence from the government or from the political front while conducting the policies.
5 pages (1250 words) Essay
Monetary Policy in Kuwait
It is basically a type of stabilization policy adopted by countries to achieve goals like price stability and high employment rates, enhancing economic growth rates and controlling imbalances in external payments, including the protection of the external purchasing power of the currency through maintaining relatively stable levels of exchange rates.
9 pages (2250 words) Essay
Monetary Policy Master Essay
There is also an analysis of Base-Rate decision. Any government has the power to regulate the economy of the country and not only does it regulate the economy, it has a vital role to ensure that the economic condition remains stable. It is the responsibility of the government to ensure that all the aspects of economy maintain a stable level so that the country can grow and expand.
8 pages (2000 words) Essay
Monetary Policy High School Essay
Further arguments were that the historical great depression though not caused by the federal reserve, was worsened by the introduction of a contractionary that caused a massive withdrawal of much needed funds from the economy. This has led to call for the replacement of federal reserve system by a computer based system that would fix rates via calculations using standard economic metrics.
2 pages (500 words) Essay
Conduct of Monetary Policy in Kuwait
CBK's published Annual Report during the fiscal years 2005 and 2006 identifies and outlines the development of the implemented monetary policy for the past two years. In general, CBK's monetary policy is geared to achieve the following objectives: enhance the attractiveness of Kuwaiti dinar and firmly establish its attractiveness as a domestic store of value; absorb the excess domestic liquidity; and boost competition among the banking and financial system units (Annual Report 2005-2006 2).
2 pages (500 words) Essay
Monetary Policy
Without a sound monetary policy, our economy would spin out of control. The policies that are conducted by the Federal Reserve Board (The Fed) are the are some of the most influential factors that affects our economic livelihood. Monetary policy attempts to influence demand for products by increasing and decreasing short term interest rates charged to banks for Federal Funds.
2 pages (500 words) Essay
Monetary Policy College Essay
In this time and age what has not changed is the primary role of the government. All countries of the world have some sort of government running the country in one way or another. One of the many ways that a government exhibits its control over the economic activities of a country is by means of a monetary policy.
4 pages (1000 words) Essay
Monetary Policy Essay
Monetary policy is implemented in line with the economic goals set by government. The central bank of a particular country or economic bloc, as in the case of the European Union, formulates these monetary policies for the attainment of these identified objectives.
6 pages (1500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT