Monetary regulation in Latvia
The key objective of the central bank’s monetary policy is to facilitate the favourable macroeconomic environment for growth of the national economy in the long term.
The courseof global economic development assumes that monetary policy, employment and financial stability can foster the economic growth most of all by ensuring the low inflation rate. The central bank creates a stable and predictable business environment by maintaining the price stability. Regarding the developed countries the general monetary policy objectives deals not only with maintenance of stability of the exchange rate and general price level, but also with stimulation of economic development, growth of employment and incomes of the citizens.
In other words, the purposes of monetary policy and monetary regulation should correspond to the purposes of social and economic policy of the state and requirements of the society. Commencing the implementation of an independent monetary policy in the early 1990s, the Bank of Latvia had to decide on an exchange rate regime. Since 1993, Latvia has been using the fixed exchange rate based stabilisation programme.
Monetary regulation in Latvia .*pdf
Prof. Dr. Valery Roldugin
