Monetary Aggregate Targeting vs. Inflation Targeting the Case of the Philippines Essay Sample free essay sample

1. 1 Background of the Survey:In about all states. pecuniary authorization is governed by a cardinal bank. In some states. it is called federal modesty or modesty bank. Other states like Andorra. Monaco and North Korea do non hold a cardinal bank due to assorted grounds. The cardinal bank has ever been responsible in pull offing the nation’s money supply or its pecuniary policy through pull offing involvement rates. puting the modesty demand. and moving as a loaner of last resort to the banking sector during fiscal crisis. In the past old ages. cardinal Bankss in industrialised states have made great gait in the ordinance of pecuniary policy. The Bangko Sentral ng Pilipinas or BSP is the cardinal bank of the Republic of the Philippines. It was established on July 3. 1993 which it took over from the Central Bank of Philippines or CBP. The BSP enjoys financial and administrative liberty from the national authorities in the chase of its mandated duties. And because the cardinal bank is the one implementing pecuniary policy. which they discuss in elaborate. the primary aim of BSP’s pecuniary policy is to advance a low and stable rising prices conducive to a balanced and sustainable economic growing. In order for the BSP to break accomplish this aim. the rising prices aiming model for pecuniary policy was adopted in January 2002 after the pecuniary sum aiming model. Under the pecuniary sum aiming. the BSP fixes money growing so as to minimise expected rising prices. However. under the current model. BSP sets pecuniary policy so that monetary value degree is non merely zero in outlook but is besides 0 regardless of latter dazes ( Gochoco-Bautista. 2001 ) . The rising prices rate of a state has ever been one of the most important economic indexs. It indicates how good the economic system is making and how good the economic system is traveling to make in the hereafter. Harmonizing to the Department of Economic Research of Bangko Sentral ng Pilipinas ( BSP ) . the BSP itself followed the pecuniary sum aiming attack to pecuniary policy in the yesteryear. This attack is based on the premise that there is a stable and predictable relationship of money and end product and rising prices. In one of the media archives of the BSP entitled â€Å"European Economists: High Marks to BSP for Clear and Comprehensive Inflation Report† in June 27. 2003. it s tated that the BSP shifted its pecuniary policy model from pecuniary sum aiming to rising prices aiming merely in January 2002. Harmonizing besides to the article. the BSP received positive feedback from assorted establishments like the Bank of England and the International Monetary Fund on its successful displacement to rising prices aiming since so. The model was changed because BSP wanted to turn to the fact that aggregative aiming did non account for the long-term effects of pecuniary policy in the economic system. The Department of Economic Research of BSP defined rising prices aiming as an attack that focuses chiefly on accomplishing monetary value stableness as the ultimate aim of pecuniary policy. It involves the proclamation of an expressed rising prices mark that the cardinal bank promises to accomplish over a given clip period. The mark rising prices rate is set and announced jointly by the BSP and the authorities through an inter-agency organic structure. The Philippines joined a long list of rising prices targeters such as Australia. Canada. Finland. Sweden. New Zealand. the United Kingdom. Israe l. Brazil. Chile and Thailand. which have moved from high rising prices to low rising prices following the successful execution of rising prices aiming in their states. The BSP. like other cardinal Bankss. recognized the of import characteristics of rising prices aiming. These are: * simple model which can. therefore. be easy understood by the populace ; * allows greater focal point on the end of monetary value stableness. which is the primary authorization of the BSP ; * advanced and recognizes that pecuniary policy actions affect rising prices with a slowdown ; * reflects a comprehensive attack to policy by taking into consideration the widest set of available information about the economic system ; * promotes transparence in the behavior of pecuniary policy through the proclamation of marks and the coverage of steps that the BPS will follow to achieve these marks. every bit good as the results of its policy determinations ; * increases the answerability of pecuniary governments to the rising prices nonsubjective since the proclaimed rising prices mark serves as a yardstick for the public presentation of the BSP. and therefore helps construct its credibleness ; and * does non depend on the premise of a stable relationship between money. end product and monetary values. and can still be implemented even when there are dazes that could weaken the relationship. This paper looks at the development of pecuniary policy in the Philippines by analyzing pecuniary sum aiming and rising prices aiming. Furthermore. this paper besides present informations of some economic indexs that may be affected by the pecuniary policy. The research worker besides analyzes these informations. 1. 2 Statement of the Problem:The research worker wants to cognize more about the differences between pecuniary sum targeting and the rising prices aiming. and would wish to cognize if the current model truly helps in bettering the country’s economic system. So. this paper will try to understand how the Philippines’ pecuniary policy is conducted today and how it differs from the mode it was conducted in the yesteryear. Furthermore. the research worker wants to turn out that the current pecuniary policy model has relevancy and is effectual given that there is a planetary fiscal crisis. 1. 3 Aims of the Survey:General Objective: To cognize the important effects of the two different pecuniary policy models to the major economic indexs in the state viz. rising prices rates. unemployment rates. GDP growing rates and reserve money Specific Aims: * To understand and explicate how pecuniary policy is conducted today comparison to how it was conducted in the past * To see how the rising prices rates differ during the period of pecuniary sum targeting and the period of rising prices aiming * To demo how rising prices rates. unemployment rates. Gross Domestic Product ( GDP ) growing rates and reserve money behaved during the two periods * To compare the mark rising prices rates during the rising prices aiming period to the existent rising prices rates of the state * To cognize how the modesty money of the state behaved during the pecuniary sum aiming period and rising prices aiming period * To cognize the relevancy of the rising prices aiming given the planetary fiscal crisis 1. 4 Significance of the Survey:This portion of the paper discusses the importance of making this survey to the followers: teachers. this will supply sample in discoursing how to carry on a research survey about pecuniary policy. pecuniary sum aiming and rising prices aiming ; pupils. this will function as a footing of their acquisition ; future research workers. this will supply them informations that can assist and back up their ain researches and surveies ; and other states. this will assist them see how pecuniary sum aiming differs from rising prices aiming in the instance of the Philippines. 1. 5 Scope and Restrictions:The information in this survey cover merely the Philippines. This survey focuses chiefly on pecuniary sum aiming and rising prices aiming. In add-on. this survey besides concentrates on the rising prices rates of the Philippines under the period of the two pecuniary policy models mentioned above. specifically from twelvemonth 1993 to 2012. Furthermore. this paper besides covers the differences of the GDP growing rates and unemployment rates between the periods of pecuniary sum aiming and rising prices aiming. Last. this paper besides surveies the alterations in the modesty money of the state during the two periods. 1. 6 Hypothesiss:The undermentioned nothing hypotheses will be validated in this survey: * Ho 1: The pecuniary sum targeting has no important consequence on the rising prices rate of the Philippines. * Ho 2: The rising prices aiming has no important consequence on the rising prices rate of the Philippines. * Ho 3: The rising prices aiming has no important consequence on the planetary fiscal crisis. * Ho 4: The rising prices rates have no consequence on the unemployment rates. * Ho 5: The rising prices rates have no consequence on the GDP growing rates. * Ho 6: The rising prices rates have no consequence on the modesty money. 1. 7 Definition of Footings:The followers are the footings that are frequently used in this survey. Each of the definitions stated below are derived from official/technical beginnings: * Bangko Sentral ng Pilipinas ( BSP ) is the cardinal bank of the Philippines * Central Bank- is the entity responsible for supervising pecuniary system for a state * Economic Growth- is a long-run enlargement of a country’s productive possible * Employment Rate- the proportion of entire figure of employed individuals to the entire figure of individuals in the labour force * GDP Growth Rate- measures how fast the economic system is turning and is goaded authorities disbursement. exports and stock list degrees * Global Financial Crisis- is a world-wide period of economic trouble experienced by markets and consumers * Inflation- is the overall general upward monetary value motion of goods and services in an economic system * Inflation Rate- is the rate of alteration of monetary values calculated on a monthly or one-year footing * Inflation Targeting ( IT ) is an economic policy in which the cardinal bank of a state estimations and makes public a projected or aim rising prices rate and so efforts to maneuver existent rising prices toward the mark through the usage of involvement rate alterations and other pecuniary tools * Monetary Aggregates- are the assorted steps of a country’s money supply * Monetary Policy- refers to the actions undertaken by a cardinal bank to act upon the handiness and cost of money and recognition to assist advance national economic ends * Reserve Money- is the money supply or the sum of money in the economic system * Unemployment Rate- per centum of employable people actively seeking work. out of the entire figure of employable people Chapter 2: Reappraisal of Re lated Literature and Surveies The dominant issues as examine in this paper was besides discussed by some other research workers. In the paper of Alex Cukierman ( 1996 ) entitled â€Å"Targeting Monetary Aggregates and Inflation in Europe† . he states that the pick between rising prices marks and pecuniary marks involves a trade-off between visibleness and controllability. His analysis reveals that rising prices marks dominate base marks when repute is high and policymakers are sufficiently patient. Furthermore. rising prices marks have the virtuousness of being focused on the concluding aim of involvement. This is peculiarly of import when the relation between money and monetary values is comparatively stable. But rising prices marks make it easier to exercise expansionary force per unit areas on the cardinal bank in order to cut down involvement rates and achieve assorted existent aims. Frederic Mishkin wrote a paper that besides evaluates the two pecuniary policy schemes which are pecuniary aiming and ri sing prices aiming. Based on his survey. the experience with pecuniary aiming suggests that although it was successful in commanding rising prices in Switzerland and particularly Germany. the particular conditions in those two states that made it work moderately good are improbable to be satisfied elsewhere. He besides stated that rising prices aiming. therefore. is more likely to take to better economic public presentation for states that choose to hold an independent domestic pecuniary policy. From the survey of Mishkin about the usage of pecuniary targeting by the United States. the United Kingdom. Canada. Germany and Switzerland. he said that utilizing the said policy can be debatable because there was instability of the relationship between pecuniary sums and rising prices and nominal income. As the consequence of this. the pecuniary targeting has either been downplayed or abandoned. A similar job of this unstable money-inflation relationship has been found in emerging market states. such as those in Latin America ( Mishkin and Savastano. 2000 ) . Mishkin besides said that pecuniary targeting has been really flexible in pattern. and a stiff attack has non been necessary to obtain good rising prices results. On the other manus. when it comes to rising prices aiming. Mishkin states things otherwise. Harmonizing to him. rising prices aiming has been successful in commanding rising prices. Based on his surveies. inflation-targeting states have been able to significantly cut down the rising prices rate from what might hold been expected given past experience. For illustration. Bernanke. Laubache. Mishkin and Posen ( 1999 ) find that rising prices remained lower after rising prices aiming started. Furthermore. Mishkin said that rising prices aiming besides weakens the effects of inflationary dazes. promotes growing and does non take to increased end product fluctuations. He said that end product and employment become high one time low rising prices degrees are achieved. Furthermore. Mishkin besides tries to indicate out that transparence and answerability are the cardinal characteristics of rising prices aiming because cardinal Bankss would be able to hold communicating to the public. Increased transparence and answerability under rising prices aiming aids advance cardinal bank independency. And because of all the statements stated. he concluded that rising prices aiming should take to better economic public presentation for states that choose to hold an independent domestic pecuniary policy. However. for it to be successful. one state should larn the lessons from past experiences. Gottschalk and Moore ( 2000 ) studied the effectivity of rising prices aiming government for Poland. They argued that rising prices aiming government could be successful in Poland with apprehension of the linkages between pecuniary policy and rising prices results and analyzed whether the requirements for this model are in topographic point. Few surveies have examined fiscal sector reforms as the indispensable pre-condition for acceptance of rising prices aiming and analyzed the readiness of India for rising prices aiming from that position ( Jha ( 2008 ) . Kannan ( 1999 ) ) . Harmonizing to Mishra. rising prices prognosiss play a cardinal function in rising prices aiming model because it is a advanced government where cardinal bank effort to command rising prices over a aiming skyline of one to two old ages. â€Å"The cardinal bank’s rising prices prognosis is so an ideal intermediate mark: it is by definition the current variable that is non correlated with the end. it is more governable than the end. and it can be made more discernible than the end. It can besides be made really crystalline. and may therefore ease the cardinal bank’s communicating with the populace and the public’s apprehension of pecuniary policy ( Svensson. 1997 ) . † Guinigundo states that big fluctuations in speed have weakened. and in some instances. interrupt down the relationship between pecuniary sums and their ultimate end variables. He claims that fiscal liberalisation in 1993 weakened the two cardinal relationships mentioned supra. He cites. in peculiar. the slowing in the rate of rising prices signifier 9 per centum in 1994 to 8. 1 per centum in 1995. despite the historically high rates of liquidness growing in 1994 and 1995. as a interruption from the yesteryear. He attributes the good rising prices public presentation in portion to provide side factors such as the favourable agricultural crop in 1994 and the casing power deficits. â€Å"With the displacement to rising prices aiming. it was observed that the outlooks channel has taken a more of import function in the transmittal of pecuniary policy in the Philippines. The enhance transparence associated with the rising prices aiming has increased policymakers’ consciousness of the importance of estimating public rising prices outlooks in the behavior of pecuniary policy. While the outlooks channel has strengthened during the rising prices aiming period. the consequence of rising prices aiming on the involvement rate channel. specifically the correlativity between the policy rate and the benchmark 91-day T-bill rate. has weakened. This grounds is consistent with rising prices aiming as a advanced model of pecuniary policy. The robust positive relationship prior to rising prices aiming may be an indicant that the policy rate so possibly more reactive to predominating fiscal developments compared to what is done under the current model ( Guinigundo ) . † Debelle and Lim ( 1999 ) examined the suitableness of rising prices aiming government for Philippines as the go outing government of base money as a nominal ground tackle for pecuniary policy was losing its ability to command rising prices in the face displacements in money demand and supply dazes. They chiefly focused on two stipulations for rising prices aiming like set uping necessary institutional substructure to construct the independency of the cardinal bank in its behavior of pecuniary policy and specifying an appropriate monetary value index and rising prices mark. Chapter 3: Model of the Study In general. pecuniary policy is exercised by the cardinal bank to act upon economic activity. It constitutes the steps and actions taken by the cardinal bank to modulate the supply of money in the economic system. Monetary policy actions of the BSP are aimed at act uponing the timing. cost and handiness of money and recognition. every bit good as other fiscal factors. for the intent of stabilising the monetary value degree. The BSP implements pecuniary policy utilizing assorted instruments to accomplish the rising prices mark set by the National Government. To contract or to spread out liquidness in the fiscal system. the BSP can make any or a combination of the undermentioned actions: * raising/reducing the BSP’s policy involvement rates ; * increasing/decreasing the modesty demand ;* encouraging/discouraging sedimentations in the particular sedimentation history ( SDA ) installation by Bankss and trust entities of BSP-supervised fiscal establishments ; * increasing/decreasing the rediscount rate on loans extended by the BSP to banking establishments on a short-run footing against eligible collaterals of banks’ borrowers ; and * straight-out sales/purchases of the BSP’s retentions of authorities securities The BSP’s primary pecuniary policy instruments are its nightlong contrary redemption ( borrowing ) rate and nightlong redemption ( imparting ) rate. A pecuniary policy model is the pecuniary authorities’ usher for carry oning pecuniary policy. It of course requires an institutional model under which pecuniary policy determinations are made and executed ( Lamberte. 2002 ) . The undermentioned factors form footing for elaborate features of a pecuniary policy model ( Fry. 2000 ) : 1. Structural differences. e. g. . the construction of the fiscal sector. types and sums of debt. openness to merchandise. trade good dependance. financial subject. etc. 2. Changing grades of indexation and other nominal rigidnesss that affect the velocity of transmittal from pecuniary policy instruments to rising prices 3. Institutional agreements and analytical restraints ( such as informations handiness ) that influence the manner in which pecuniary policy can react. Figure 1 below shows a simple and general model for the behavior of pecuniary policy. As may be gleaned from this representation. transmittal mechanism channels allow pecuniary policy to act upon or impact economic variable. Figure 1. A Simple Representation of Conducting Monetary Policy There are several types of pecuniary policy which a cardinal bank may use. One of which is pecuniary sum aiming which focuses on commanding pecuniary measures. Rapid growing of pecuniary sums serves as trigger for cardinal Bankss to increase involvement rates. because of the fright of rising prices. This scheme comprises three elements: 1 ) trust on information conveyed by a pecuniary sum to carry on pecuniary policy. 2 ) proclamation of marks for pecuniary sums. and 3 ) some answerability mechanism to prevent big and systematic divergences from the pecuniary marks ( Mishkin. 2000 ) . An advantage of base targeting is that cardinal bank has full control of the variable. However. it is less seeable or crystalline such that its effects on inflationary outlooks may be restricted to merely those with sufficient acquaintance with fiscal and pecuniary affairs ( Cukierman. 1996 ) . Under the pecuniary sum aiming. the Quantity Theory of Money can be related. This theory was foremost developed by Irving Fisher in the inter-war old ages as a basic theoretical account for the nexus between money and the general monetary value degree. It states that the alterations in money supply ( on the premise that speed is stable over clip ) are straight related to monetary value alterations or to rising prices. Therefore. it is assumed that the BSP is able to find the degree of money supply that is needed given the coveted degree of rising prices that is consistent with the economy’s growing aim. In consequence. under the pecuniary targeting model. the BSP controls rising prices indirectly by aiming money supply. In add-on. pecuniary governments wanted to turn to one of the booby traps of pecuniary targeting. i. e. . it does non account for the long and variable clip slowdown in the effects of pecuniary policy on the economic system. Under the modified model. the BSP ca n transcend the pecuniary marks every bit long as the cultural rising prices rate is kept within plan degrees. Under this modified attack. policymakers monitor a larger set of economic variables in doing determinations sing the appropriate stance of pecuniary policy. This includes motions in cardinal involvement rates. the exchange rate. domestic recognition and equity monetary values. indexs of demand and supply. and external economic conditions. among other variables. Harmonizing to Maria Socorro Gochoco-Bautista ( 2001 ) . in theory. a narrower pecuniary sum would be assumed to hold a closer nexus to rising prices. as narrow money is held chiefly for minutess intents while broader money steps partially reflect the retention of money as a shop of wealth. Gochoco-Bautista besides stated in her treatment paper that â€Å"the consequences of Guinigundo’s survey similarly imply that narrower pecuniary sums are to be preferred as marks since broader sums tend to set more easy towards equilibrium after a daze. † â€Å"His consequences imply that the growing rate of income speed is stable and. therefore. would non potentially pose a job every bit far as the dependability of pecuniary aiming accomplishing the end of monetary value stable ness. † â€Å"This means that there is a long-term relationship between money. on the one manus. and end product and involvement rates. on the other. so that even if there are dazes to the economic system. the variables will return to their tendency equilibrium degrees. † In add-on. Guchoco-Bautista ( 2001 ) besides stated that under the pecuniary sum aiming model. the pecuniary authorization holes money growing in order to cut down expected rising prices in long-term equilibrium. Another type of pecuniary policy which has gained popularity in recent old ages is rising prices aiming. The literature can come up with a batch of definitions of rising prices aiming. It is an economic policy in which a cardinal bank estimations and makes public a projected or aim rising prices rate and so efforts to maneuver existent rising prices towards the mark through the usage of involvement rate alterations and other pecuniary tools. It focuses on keeping a low degree of rising prices. that which is considered to be optimum or at least would let the state to hold ample economic growing. Its chief desire is to accomplish monetary value stableness as the ultimate terminal end of the pecuniary policy. In rising prices aiming. there are standards that were proposed by a figure of writers. Those suggested by Mishkin and Savastano are representative of those found elsewhere in the literature. These are: a public proclamation of a numerical mark for rising prices ; a committedness t o monetary value stableness as the overruling end of policy ; the usage of an information-inclusive scheme ; and the acceptance of high degrees of transparence and answerability. These standards are non really helpful in specifying this policy model because some standards are ill-defined. Harmonizing to Amato and Gerlach. the acceptance of rising prices aiming requires that an appropriate monetary value index be selected and that the exact degree of the mark be determined. The rising prices aiming is considered to be the most of import alteration in the model of pecuniary policy since the prostration of the Bretton Woods system in the early 1970s as it was started to be used by a figure of states ( Amato and Gerlach. 2001 ) . The trademark of the rising prices aiming as a pecuniary policy model are an expressed committedness by the cardinal bank to maintain an rising prices index near to a periodically-adjusted mark. and the usage of an rising prices prognosis as the intermediate mark for policy ( O’Connell. 2008 ) . Harmonizing besides to O’Connell ( 2008 ) . the initial experience of adoptive parents has been extremely encouraging because a careful recent empirical survey finds that the 13 emerging-market states that adopted rising prices aiming between 1997 and 2002 experienced lower and more stable rising prices subsequent to adoption– and larger betterments on both measure– than did a control group of non-targeting emerging-market states including Nigeria. and at no noticeable cost in footings of existent volatility ( Batini et al. . 2005 ) . Furthermore. the success of rising prices aiming appeared to be mostly unrelated to indexs of exchange rate government. fiscal sector hardiness. and even financial stableness ( Batini et al. . 2005 ) . In an rising prices aiming model. the cardinal bank commits to accomplishing an proclaimed numerical mark ( which is normally a figure. with specified allowable divergences. such as 2. 5 +/- ) for the rate of addition in a specified m onetary value index– normally the CPI. Table 1. Features of Inflation Targeting Agreements As indicated in Table 1. scopes are narrow among emerging-market states the mean scope is hardly above two per centum points. The system implies a committedness to convey rising prices back into scope when it moves outside. but there is a broad fluctuation in the formality of committednesss sing the clip skyline over which this is to be accomplished ( Truman. 2003 ) . The illustration ( Figure 2 ) below shows the operational guidelines that the BSP has been detecting since its execution of rising prices aiming in 2002. Figure 2. Inflation Targeting Framework The rising prices aiming tends to put greater accent on monetary value stableness in stead of stiffly keeping the intermediate pecuniary marks. This attack besides obviously reduces the hazard of pecuniary policy being either excessively tight or excessively loose. as may go on with rigorous attachment to a traditional base money plan ( Gochoco-Bautista. 2001 ) . In contrast to what Gochoco-Bautista ( 2001 ) stated about the pecuniary sum targeting. she said that under an rising prices aiming. the governments set pecuniary policy so that the monetary value degree is non merely zero regardless of ulterior dazes. The monetary value degree regulation eliminates the effects of demand perturbations. It can be shown that the monetary value degree regulation is likely to rule the money supply regulation if speed dazes are big and any weight is placed at all on the rising prices aim. If Quantity Theory of Money is related to pecuniary sum aiming. the Taylor Rule. on the other manus. is related to rising prices aiming. Taylor Rule was foremost proposed by the U. S. economic expert John B. Taylor and at the same time by Dale W. Henderson and Warwick McKibbin in 1993. It is a monetary-policy regulation that stipulates how much the cardinal bank should alter the nominal involvement rate in response to alterations in rising prices. end product. or other economic conditions. In peculiar. the regulation stipulates that for each one-percent addition in rising prices. the cardinal bank should raise the nominal involvement rate by more than one per centum point. This regulation is intended to further monetary value stableness and full employment by consistently cut downing uncertainness and increasing the credibleness of future actions by the cardinal bank. Harmonizing to Caglayan ( 2010 ) . the Taylor Rule which is often cited with its success in using rising prices aimin g in recent old ages. is defined as the cardinal banks’ control on the involvement rates in response of the prejudices between the existent and targeted values. Figure 3. Phillip’s Curve Beginning: World Wide Web. bized. co. United Kingdom Phillip’s Curve by William Phillips is shown in the figure above. It can besides be related to this survey. This curve represents the relationship between the rate of rising prices and the employment rates. William Phillips found a consistent opposite relationship: when unemployment was high. rewards increased easy ; when unemployment was low. rewards rose quickly. Harmonizing to Kevin D. Hoover. Phillips conjectures that the lower the unemployment rate. the tighter the labour market and hence. the faster the houses must raise rewards to pull scarce labour. In the instance of this survey. under the rising prices aiming. in where the rising prices is lower compared to the pecuniary sum aiming. the unemployment rate is supposed to be high. Chapter 4: Methods and Beginnings of Datas 4. 1 Methods Used:The research worker gathered relevant informations and information for the survey so the whole job will be summarized and explained in a manner that it will be easy understood. Furthermore. the research worker analyzed the information gathered through arrested development. 4. 2 Data Gathering Instruments: The research worker used secondary beginnings including text editions. cyberspace articles. intelligence cuttings. studies. diaries and the similar. 4. 3 Treatment of Datas: The survey utilized a descriptive research wherein forms and features of variables were illustrated and determined truly. This survey besides utilized a correlativity research wherein the relationship of the index variables of the survey to one another was analyzed. and thequantitative footings were described. Furthermore. this survey besides used arrested development analysis wherein the relationships between variables were estimated. In this analysis. the conditional outlook of the dependant variable given the independent variables will be estimated. Chapter 5: Presentation and Analysis of Datas The research worker gathered the statistics of rising prices rates. reserve money. unemployment rates. employment rates and GDP growing rates under the period of pecuniary sum aiming and rising prices aiming. And the informations are presented below.