THE IMPACT OF THE CENTRAL BANK'S COMPULSORY RESERVE POLICY ON ECONOMIC GROWTH
https://doi.org/10.5281/zenodo.14292613
Keywords:
Central bank, compulsory Reserve policy, economic growth, inflation, money supply, economic stability, amount of money, Economic PolicyAbstract
This article explores the impact of the central bank's compulsory Reserve policy on the economy. The article used econometric analysis methods, in particular correlation and regression analysis, to determine the correlations between the mandatory Reserve rate, inflation, and money supply. The results of the analysis showed that there is a negative correlation between the mandatory Reserve rate and economic growth.
Also, the impact of inflation and money supply on economic growth was assessed. Based on the results of this analysis, recommendations were made to more effectively manage the central bank's mandatory Reserve policy to ensure economic stability.
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