Controlling the growth of a certain amount of banks’ balance sheets leads to a decrease in inflation
According to Iran Economist, quoted by Central Bank media, Sajjad Ebrahimi stated: Central Bank has implemented the right policy and has managed to control the growth of some balance sheet, a part of the growth of monetary totals and also the increase of liquidity in the country through crediting banks. and if this crediting is unorganized, it may lead to inflation.
The head of monetary and foreign exchange group of monetary and banking research institute stated that controlling the growth of the balance sheet can be a useful tool to control inflation, and clarified: but in the implementation of the policy of controlling the growth of the balance sheet, there are two considerations, firstly, the effectiveness of this policy has a size and From a certain point onward, this policy cannot be expected to control the growth of liquidity and monetary totals, secondly, secondly, this policy can harm the crediting of the production sector, so it must be implemented correctly and accurately.
A member of the academic staff of the Monetary and Banking Research Institute added: In general, the approach of this policy is good, but its considerations must also be seriously considered; Besides, its success also depends on the monitoring of banks’ crediting methods.
Ebrahimi emphasized: On the other hand, in addition to applying this policy, other complementary policies that cause liquidity growth and can be seen mainly in the growth of the monetary base should also be used and controlled, in fact, the policies should be implemented as apply a set because otherwise it may damage the production department and have low efficiency.
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