Economic growth is a plus, but, lik

Economic growth is a plus, but, like all good things, it's best not to have
too much at once. If the economy grows too rapidly, the result can be
inflation. Steady growth is best, and governments use fiscal and
monetary policy tools to achieve this. For example, they set interest
rates in order to control borrowing and investment. However, the
government can't just state, 'today's interest rate is four per cent' and
expect all the other banks to follow. As usual, things are a bit more
complicated!
The interest rate is not really set by the government at all, but by the
levels of demand and supply of money in the money market. Imagine
that money is like any other commodity, and the price of money is the
interest rate. Banks can charge any interest rate that customers are
willing to pay. If there is a limited amount of money available, the
suppliers (the banks) will charge a higher price (the interest rate) as
demand for money increases. Demand comes from the public who want
to spend money to buy things and from businesses who want to invest
9
money in order to grow. Just like other commodities, demand for money
will fall as the price (interest rate) rises. The interest rate will be set by
the market. It will be where the demand and supply curves meet - the
equilibrium point.
Also, just like other markets, there can be shifts in the demand and
supply curves. When shifts happen, the equilibrium point (the interest
rate that is set) changes. This new interest rate may be above or below
the government's target. What can they do about it? One thing they can
do is to influence the supply of money in the market.
What exactly is the money supply and how can the government
influence it? Obviously, the money supply includes all the notes and
coins in purses, pockets and cash tills. Some of this money will be
money that has been borrowed from banks, so loans form part of the
money supply too. The supply also includes money that people and
companies have in bank accounts, and the money that banks have in
their reserve accounts in the central government bank.
Remember that banks lend most of the money that customers deposit.
When customers want to make withdrawals, the bank takes cash from its
reserve account with the central government bank. If the commercial
bank has a shortage of cash in its reserve account, it is obliged to borrow
from the central bank. When a commercial bank borrows from the
central bank, it must borrow at the government's rate of interest. This is
how the government can influence the interest rate equilibrium point of
the market.
However, the government needs to ensure that at the end of each day the
commercial banks have a shortage of cash. And, of course, they have
ways of doing this!

Результаты (русский) 1:

Economic growth is a plus, but, like all good things, it's best not to havetoo much at once. If the economy grows too rapidly, the result can beinflation. Steady growth is best, and governments use fiscal andmonetary policy tools to achieve this. For example, they set interestrates in order to control borrowing and investment. However, thegovernment can't just state, 'today's interest rate is four per cent' andexpect all the other banks to follow. As usual, things are a bit morecomplicated!The interest rate is not really set by the government at all, but by thelevels of demand and supply of money in the money market. Imaginethat money is like any other commodity, and the price of money is theinterest rate. Banks can charge any interest rate that customers arewilling to pay. If there is a limited amount of money available, thesuppliers (the banks) will charge a higher price (the interest rate) asdemand for money increases. Demand comes from the public who wantto spend money to buy things and from businesses who want to invest9money in order to grow. Just like other commodities, demand for moneywill fall as the price (interest rate) rises. The interest rate will be set bythe market. It will be where the demand and supply curves meet - theequilibrium point.Also, just like other markets, there can be shifts in the demand andsupply curves. When shifts happen, the equilibrium point (the interestкурс, который установлен) изменения. Эта новая процентная ставка может быть выше или нижеЦель правительства. Что они могут сделать? Одна вещь, которую они могутли это влиять на предложение денег на рынке.Что именно денежной массы и как может правительствовлияние это? Очевидно, денежная масса включает все примечания имонеты кошельки, карманы и наличными розница. Некоторые из этих денег будетденьги, которые были заимствованы из банков, поэтому кредиты составляют частьДенежная тоже. Предложение также включает деньги что люди икомпании имеют в банковских счетах и деньги, которые банки имеют вих резервные счета в банке центрального правительства.Помните, что банки предоставляют большую часть денег, что депозиты клиентов.Когда клиенты хотят сделать вывод средств, Банк принимает наличные из егорезервный счет в банке центрального правительства. Если коммерческаяБанк имеет дефицит наличных средств на ее резервном счете, вынуждена заимствоватьот центрального банка. Когда коммерческий банк заимствуетЦентральный банк, он должен занимать в правительственной процентной ставке. Этокак правительство может повлиять на точку равновесия процентная ставкарынок.Однако, правительство должно обеспечить, чтобы в конце каждого днякоммерческие банки имеют дефицит наличных средств. И, конечно же, они имеютспособов сделать это!