Macroeconomic Variables

Introduction

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 MACROECONOMIC VARIABLES

Target Variables Instrument Intermediate Indicative

Variables Variables Variables

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 Target Variables
• Economic Growth

• Price Stability (Containing Inflation)

• Social Justice (Reducing the unemployment

rate and incidence of poverty to the minimum
possible levels) and Ecological Balance

• Self Reliance and Non-dependence ( Securing

adequate balance of foreign exchange reserves)
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 Instrument Variables
KEY INSTRUMENTS
• Fiscal Policy
• Monetary Policy
OTHER INSTRUMENTS
• Trade Policy (Exim Policy)
• Income Policy
• Sector-specific Policies (like policies
related to Agriculture, Industry, Labour and
other sectors of the economy)
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 Intermediate Variables
• Money Supply
• Interest Rate
• Savings
• Investment
• Bank Credit
• Imports
• Exports
• Government Expenditure
• Taxes/Subsidies, etc.

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 Indicative Variables
• Monsoon
• Stock Exchange Index
• F.E. Reserves
• Fiscal Deficit
• Political Stability
• Social Harmony, etc.