Theory of economics

REPUBLIC OF UZBEKISTAN HIGHER AND SECONDARY SPECIAL
MINISTRY OF EDUCATION
TASHKENT FINANCIAL INSTITUTE
'' ECONOMY '' DEPARTMENT
On the subject of "THEORY OF ECONOMICS"


COURSE WORK


Theme: The impact of macroeconomic policy on the dynamics of a balanced real exchange rate


Done: Finance faculty, MM55i group student
Usarova Muxlisa
Checked: Omonov Nurbek teacher

The date on which the course work is submitted for review«____» _______2021 y.		The date on which the course work was reviewed«____» _______2021 y.
_________________________'>The date on which the course work is defended«____» _______2021 y. Mark «_____» _________	___________ (signature) ___________ (signature) ___________ (signature)	Commission members: __________________ __________________ __________________

TASHKENT – 2021
Contents
Plan:
Introduction
Main part

1. 
   Real exchange rate policies for economic development
   
2. 
   The existence of a positive association between real exchange rate levels and economic growth
   
3. 
   Exchange rate targeting mode
   

Conclusion
Literatures





Introduction
A new phase of economic reforms aimed at liberalizing the economy and enhancing the role of market mechanisms, which began in 2017, has identified priorities for the development of the banking system and monetary policy in the medium term.
One of the important decisions in this direction was the practical steps towards the gradual liberalization of the domestic foreign exchange market through the introduction of the principles of formation of the national exchange rate on the basis of market mechanisms.
The use of a completely new approach to the formation of the exchange rate, in turn, will allow the Central Bank to improve monetary policy while focusing on price stability in the domestic market.
At the same time, the successful implementation of reforms to liberalize the foreign exchange market is largely due to the effectiveness of measures to improve monetary policy, strengthen the activities of commercial banks and develop the banking system.
Therefore, soon after the promulgation of the Decree of the President of the Republic of Uzbekistan "On priority measures to liberalize the foreign exchange market" the President of the Republic of Uzbekistan issued a decree "On further development of monetary policy. and a set of measures for the development of monetary policy and the gradual transition to inflation targeting in 2017-2021.
One of the next important steps in this direction was the adoption of the Decree of the President of the Republic of Uzbekistan dated January 9, 2018 "On radical improvement of the Central Bank of the Republic of Uzbekistan."
The decree sets the task of ensuring price stability as the main goal of the Central Bank and provides for appropriate measures to ensure the independence and institutional development of the Central Bank.
It should be noted that in the new realities that are emerging during the period of revision of economic policy approaches, it is important that the changes in the monetary sphere are properly accepted and supported by the population and businesses.¹
The Concept of Development and Implementation of Monetary Policy of the Central Bank of the Republic of Uzbekistan in the Medium Term has been developed taking into account the leading role of the communication channel in shaping public opinion and implementing the inflation targeting regime.
The purpose of this Concept is to inform and explain to the general public the conceptual framework for the transition to inflation targeting and the medium-term plans to create the necessary conditions for the successful implementation of this monetary policy regime.
The role of monetary policy in ensuring macroeconomic stability and development
Ensuring domestic price stability in the country is a guarantee of macroeconomic and social stability and a necessary condition for the successful implementation of programs to accelerate and develop economic reforms.
At the same time, low and stable inflation is an important factor in ensuring balanced economic growth, competitiveness of production and improving the living standards of the population. In this regard, the reduction and stabilization of inflation should be one of the main goals of state economic policy.
Low and stable inflation creates the necessary conditions for the conversion of deposits of individuals and legal entities into long-term investments and reduces the price imbalance in the domestic market and serves the efficient distribution of available economic resources.

1.