| Accountability | The idea that central bankers should be held responsible for their policies.
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| Central bank | The financial institution that manages the government's finances, controls the availability of money and credit in the economy, and serves as the bank to commercial banks.
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| Central bank independence | The central bank's freedom from political pressure.
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| Exchange-rate stability | One of the objectives of the central bank is to reduce exchange-rate fluctuations making it stable.
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| Financial stability | One objective of the central bank is to eliminate financial system volatility, ensuring that it remains stable.
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| Financial system | The system that allows people to engage in economic transactions. It is composed of five parts: money, financial instruments, financial markets, financial institutions, and central banks.
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| Fiscal policy | The government's tax and expenditure policies, usually formulated by elected officials.
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| Hyperinflation | Very high inflation; when prices double every two to three months.
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| Interest-rate stability | One of the objectives of the central bank is to reduce interest-rate fluctuations keeping it stable.
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| Monetary policy | The central bank's management of money, credit, and interest rates.
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| Monetary policy framework | A structure in which central bankers clearly state their goals and the trade-offs among them.
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| Potential output | What the economy is capable of producing when its resources are used at normal rates; also called sustainable output.
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| Price stability | One objective of the central bank is to keep inflation low so that prices are stable on average.
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| Sustainable growth | When the economy is growing at the rate dictated by potential output.
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| Transparency | The central bank's communication of its policy decisions and how they are made clearly to the financial markets and the public.
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