MONETARY POLICY OF GEORGIA AND ITS ROLE IN REGULATION OF MONEY TURNOVER

Abstract

In article the main aspects, contradictions and problems of the modern monetary policy of Georgia are considered. The common ways of regulation of money circulation in the country are disclosed. The main ways of the formation and implementation of the monetary policy in the country, using such criteria of the comprehensive analysis as: the impact on the liquidity of the banking system; ensuring of the control of the desired dynamics of monetary circulation and money supply; improving the efficiency of resource development between the various financial and credit institutions; simplification of administrative management; advantage of monetary policy in comparing with alternative instruments, are analyzed. It was determined that the main task of the Georgian National Bank’s monetary policy is the price stability. In order to maintain the inflation target, the National Bank uses short-term interest rate, changes of which, by the help of the monetary transmission mechanism has an impact on a single demand, as a result, the price level changes.