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RE: Is monetary policy and credit policy the same?

in Economics2 years ago

The central bank controls currency supply, depending on the volume of trade and the nature of the transactions of the issued currencies.

This is completely untrue. The Central Bank has no control over this area. It wants people to think it does but it does not.

The Central Bank is completely powerless to make banks lend or people borrow. It also has no control over people paying back debts or when defaults take place.

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Yes, You talked about real facts! A central bank is assign to monitor and control the banking sector and responsible to manages the currency and monetary policy of a country. Central banks in most nations are still limited control over the interest rates, the exchange rate, money supply and debt control in an open Economy.