Monetary policy frameworks are strategies adopted by central banks to achieve their policy objectives. Exchange rate anchor (or targeting), monetary aggregate targeting, and inflation targeting are established monetary policy frameworks used by central banks around the world. Sterilization is a technique or operation used by a central bank (often in the context of managing exchange rates or capital flows) to neutralize the impact of its interventions on the domestic money supply; it is not typically considered a standalone monetary policy framework or strategy itself. "Sterilization rate control" is not a recognized monetary policy arrangement.
Which of the following is not a monetary policy arrangement?
Asked in WBCS Main Paper 5 2022 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
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