ISSN 2348-313X (Print) International Journal of Life Sciences Research ISSN 2348-3148 (online) Vol. 10, Issue 3, pp: (71-75), Month: July - September 2022, Available at: www.researchpublish.com
MATERIAL MONETARY POLICIES OF THE CENTRAL BANK IN THE CIRCUMSTANCES OF COVID 19 Postgraduate Than Thi Vi Linh Banking Academy DOI: https://doi.org/10.5281/zenodo.7070772
Published Date: 12-September-2022
Abstract: The covid pandemic has had a strong impact on countries and Vietnam. Economic stability is Vietnam's goal. To achieve that goal, the State Bank is in charge of planning and implementing monetary policy. In this material, the author points out the impact of the covid epidemic on the economy and the central bank's monetary policy in the context that the covid epidemic has been taking place very strongly. Keywords: monetary policy, central bank, covid-19 epidemic.
1. INTRODUCTION The current Covid-19 epidemic is posing unprecedented challenges and enormous difficulties to the entire world economy in general and Vietnam's economy in particular. Basic commodity prices are forecasted to remain high, inflation risks, financial instability tend to increase, central banks around the world tend to withdraw easing measures earlier than expected ants. Economic stability is considered an important strategic goal of our Party and State. In that context, the State Bank of Vietnam still operates a stable monetary policy with the main orientation to support the economic recovery momentum in the context of the complicated development of the epidemic, realizing the dual goals of the Government. "Fighting the epidemic, while ensuring economic development". The State Bank has operated a proactive, flexible and prudent monetary policy, in close coordination with fiscal policy and other macroeconomic policies in order to control inflation and stabilize the macro-economy, currency and foreign exchange markets, supporting economic recovery in the face of complicated developments of the Covid-19 epidemic.
2. CONTENT 1. Central bank monetary policies Monetary policy is an important part of the National Financial Policy. The State Bank of Vietnam acts as the Central Bank and is responsible for implementing the National monetary policy. Monetary policy refers to the actions taken by a country's central bank to control the money supply in order to achieve macroeconomic objectives in order to promote sustainable economic growth. The objective of monetary policy includes 2 levels of objectives, namely the ultimate goal and the operating objective of monetary policy. The ultimate goal of monetary policy includes the goal of stability and growth. Operating objectives are monetary variables that have a strong impact in a certain direction on the ultimate goal of monetary policy. 2. Central bank monetary policies 2.1. The status of monetary policies of the Central Bank In Resolution No. 124/2020/QH14 dated 11/11/2020 on the socio-economic development plan for 2021, the State Bank has defined the 2021 monetary policy as follows:
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