Monetary Policy and Efficiency in Real Sector

Most of central banks are responsible for single inflation goal, some central banks (for example FRS) fulfill dual mandate of maximum employment and price stability. Paper argues that the best way to promote sustainable economic growth and at the same time to contribute to low inflation and full employment is to promote the increase in efficiency in real sector. Paper suggests that the tool by which monetary policy can affect efficiency in real sector is interest rate. In particular, in order to promote the increase in efficiency in real sector, monetary policy should provide the equality of interest rate and rate of profit in real sector. Paper also argues that monetary system based on trade finance loan is more conducive to growth in efficiency than monetary system based on money loans