Monetary Policy Statement
A Monetary Policy Statement (MPS) is a document issued by a central bank or other monetary authority that outlines its objectives and the strategies it will use to achieve those objectives. The MPS is typically released on a regular basis, such as quarterly or annually, and is used to communicate the central bank’s policy decisions to the public. The MPS is an important tool for central banks to communicate their intentions and to influence the behavior of economic agents, such as businesses and households.
History of Monetary Policy Statements
The use of Monetary Policy Statements dates back to the early 20th century, when central banks began to issue statements outlining their objectives and strategies. The first MPS was issued by the Bank of England in 1920, and since then, many other central banks have adopted the practice. The MPS has become an important tool for central banks to communicate their intentions and to influence the behavior of economic agents.
Table of Comparisons
| Central Bank | Frequency of MPS | Objectives |
|---|---|---|
| Bank of England | Quarterly | Price stability, financial stability, and economic growth |
| European Central Bank | Annually | Price stability and financial stability |
| Bank of Japan | Quarterly | Price stability and economic growth |
Summary
A Monetary Policy Statement (MPS) is a document issued by a central bank or other monetary authority that outlines its objectives and the strategies it will use to achieve those objectives. The MPS is typically released on a regular basis, such as quarterly or annually, and is used to communicate the central bank’s policy decisions to the public. For more information about Monetary Policy Statements, please visit the websites of the Bank of England, the European Central Bank, and the Bank of Japan.
See Also
- Central Bank
- Monetary Policy
- Interest Rates
- Exchange Rates
- Inflation
- Quantitative Easing
- Fiscal Policy
- Economic Growth
- Financial Stability
- Price Stability
