The balance between policy objectives can be addressed in a number of ways. Here are some possible solutions:
Establish coordination mechanisms: Policymakers can discuss and make decisions on monetary policy and other macroeconomic policies through the establishment of coordination mechanisms, such as the Monetary Policy Committee or the Macroeconomic Committee. These institutions can facilitate communication and cooperation among policymakers and help coordinate the relationship between different policy objectives.
Setting priority goals: In some cases, policymakers can set priority goals and focus their main efforts on achieving the most important goals. This avoids conflicts between different objectives and allows you to focus on achieving your priorities.
Use a combination of policy tools: Policymakers can use a combination of policy tools to balance different policy objectives. For example, while pursuing price stability, economic growth and employment can be supported through targeted RRR cuts and fiscal subsidies.
Improve the policy transmission mechanism: Policymakers need to improve the policy transmission mechanism to ensure that the policy can be effectively transmitted to the real economy and produce the desired effect. This can be achieved by improving the financial market environment and strengthening policy advocacy and guidance.
Strengthen data analysis and monitoring: Policymakers need to strengthen the analysis and monitoring of macroeconomic data to keep abreast of economic conditions and identify potential problems and risks. This will help to formulate more scientific and rational policies that balance the relationship between different objectives.
In summary, solving the balance between policy objectives requires policymakers to take a variety of measures into account. By establishing coordination mechanisms, setting priority targets, using a combination of policy tools, improving policy transmission mechanisms, and strengthening data analysis and monitoring, we can effectively balance the relationship between different policy objectives and achieve stable macroeconomic growth.