Learning guides - English - Page 5

What is fiduciary money? Fiduciary money, or currency, refers to banknotes and coins in circulation in the economy. This is the liquidity available to economic actors to carry out transactions. It…

What is scriptural money? Scriptural or book money is the money available on the current accounts of households and businesses. It is a simple accounting entry made by a financial institution…

What is money creation? Money creation is the process leading to an increase in the money supply. This money supply can be divided into 2 main categories: - currency: This is notes and coins in…

What is QE? Quantitative Easing (QE) is monetary easing, organized by a central bank, to stimulate economic activity within a country. It is an unconventional measure causing an increase in the…

Policy rates are one of the main tools of central banks’ monetary policy. They have a big impact on financial markets and the economy. There are also major movements in Forex and global stock…

A country's monetary policy is driven by central banks. The best known (ECB, FED, BoJ and BoE) are independent, but some are directly linked to the government as is the case in China. There are three…

Definition of the money supply The money supply is the volume of money in circulation at a given time T. It is the monetary authorities (central banks) that determine how much this volume should…

As important as it is to understand economic activity indicators, it would be useless if this knowledge were not used to anticipate monetary policy actions and more particularly the actions of the…

Definition of a central bank Central banks are independent public institutions that are responsible for the monetary policy within their country or geographical area. They are mandated by the State…