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Monetary policy Quantative techniques

Monetary policy Quantative techniques

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Published by mrmnsh

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Categories:Types, School Work
Published by: mrmnsh on Feb 28, 2010
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04/26/2013

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Monetary PolicyMonetary Policy
Manish SharmaManish Sharma
 
 The part of the economic policy which regulates The part of the economic policy which regulatesthe level of money in the economy in order tothe level of money in the economy in order toregulate inflation, improve balance of payments,regulate inflation, improve balance of payments,increase gross national product etc. RBI, in caseincrease gross national product etc. RBI, in caseof India controls the monetary policy.of India controls the monetary policy.
 The policy statement traditionally announced The policy statement traditionally announcedtwice a year through which RBI insures Pricetwice a year through which RBI insures Pricestability for the economy.stability for the economy.
April-September - Slack Season PolicyApril-September - Slack Season Policy
October-March - Busy Season PolicyOctober-March - Busy Season Policy
RBI reserves its right to alter monetary policy toRBI reserves its right to alter monetary policy totime to time depending upon state of economytime to time depending upon state of economy
WHAT IS MONETARY POLICYWHAT IS MONETARY POLICY
 
How is the Monetary PolicyHow is the Monetary
 
Policydifferent from the Fiscaldifferent from the FiscalPolicy?Policy
 
?
 
 The Monetary Policy is different from Fiscal The Monetary Policy is different from FiscalPolicy as the former brings about a changePolicy as the former brings about a changein the economy by changing money supplyin the economy by changing money supplyand interest rateand interest rate
Fiscal policy is a broader tool with theFiscal policy is a broader tool with thegovernment to overcome recession andgovernment to overcome recession andcontrol inflation through change incontrol inflation through change ingovernment revenue and expenditure togovernment revenue and expenditure toinfluence the level of national output andinfluence the level of national output andprices.prices.

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