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is a central banking policy that revolves around adjusting monetary policy to achieve a specified annual rate of inflation. Variants of the policy is adopted by most central banks in advanced economies, and the desired inflation rate is commonly set around percent. Under the policy, when the inflation rate is low, the central bank wi the interest rate. The function of the central bank providing liquidity in a financial crisis is called the This function should be used very carefully because it creates on the part of banks receiving liquidity assistance. is a central banking policy that revolves around adjusting monetary policy to achieve a specified annual rate of inflation. Variants of the policy is adopted by most central banks in advanced economies, and the desired inflation rate is commonly set around percent. Under the policy, when the inflation rate is low, the central bank wi the interest rate. The function of the central bank providing liquidity in a financial crisis is called the This function should be used very carefully because it creates on the part of banks receiving liquidity assistance
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