Lecture # 5. Role of Central Banks. Role of Central bank. Monitoring Provide guide lines. Balance of Trade. The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period of time. Balance of Trade.
Role of Central Banks
In order to fill the trade gap government intervenes:
both of these must be balanced & to keep them balanced is primary obligation of Central bank.
is defined as a condition where the sum of debits and credits from the Current Account and the Financial Account equal zero;
Current Account + Financial Account = 0
1. Economic Growth
Economic growth is the increase in value of the goods and services produced by an economy. It is conventionally measured as the percent rate of increase in real gross domestic product, or GDP.
In politics, the fight against poverty is usually regarded as a social goal and many governments have — secondarily at least — some dedicated institutions or departments.