In summary, the monetary policy model followed by the Reserve Bank can be seen as follows: To support maximum sustainable economic growth and development; the rate of inflation must be kept low (the value of the currency must be protected); to achieve this objective, the rate of growth in the money supply must be kept within an acceptable range (the guidelines); as money is created, mainly through bank credit extension, monetary policy must be directed towards some control over bank credit extension, which requires some management of the amount of funds available in the banking system, and a consistent interest rate policy.
Seite 6 von 13  Deutsche Bundesbank, Directorate General Communications Wilhelm-Epstein-Strasse 14, 60431 Frankfurt am Main, Germany, Tel: +49 (0)69 9566 3511 or 3512, Fax: +49 (0)69 9566 3077 presse@bundesbank.de, www.bundesbank.de Reproduction permitted only if source is stated. In a fourth step, and once sufficient time has elapsed, the effects of the instruments need to be assessed in an ex post evaluation.