Public spending
monetary sterilization
internal monetary sterilization
external monetary sterilization.
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Monetary sterilization policies are one of the modern trends of monetary policy in rentier countries, specifically to
confront the positive shocks in foreign assets flowing into the national economy and the impact of these shocks on monetary and real
variables. And that the Central Bank contains these emergency increases in foreign exchange with the aim of avoiding the impact of
this increase on the official local currency through its three main monetary tools, which are the rediscount rate, the legal reserve, and
open market operations. As well as the relationship between the central bank and the objective of external balance, which is reflected
in the balance of payments balance, the central bank resorts to managing the exchange rate
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