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SUBMITTED BY:-
VIKAS DUBEY(B44)
SUNNY VERMA (B45)
ANMOL SINGH (B43)
RITU RAJ (B47)
AMAN DATTA (B48)
Amity Business School
MONETARY POLICY
Monetary policy is the process by which the
government, central bank or monetary authority of a
country controls
(i) the supply of money
(ii) availability of money
(iii) cost of money or rate of interest
in order to attain a set of objectives oriented towards the
growth and stability of the economy. Monetary theory
provides insight into how to craft optimal monetary
policy.
Amity Business School
Investment increases
Problem: Inflation
Measures: (1) Central bank sells securities
through open market operation
(2) It raises cash reserve ratio
and statutory liquidity
(3) It raises bank rate
(4) It raises maximum margin against
holding of stocks of goods
• Three sub-periods:
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