Monetary policy involves controlling the supply, availability, and cost of money in an economy to achieve objectives like price stability, economic growth, and full employment. The main tools of monetary policy are open market operations, required reserve ratios, and interest rates. The goal of monetary policy is typically price stability, as low and stable inflation supports economic growth. Expansionary policy increases the money supply to boost growth, while contractionary policy decreases it to curb inflation.
Monetary policy is how a central bank acts in its economic environment. A central bank is a national (or, in the case of the European Central Bank, a supranational) institution. Mostly the primary goal is to maintain price stability. Another common goal is to support the economy if it does not inhibit the achievement of price stability to a risky extent. This chapter examines what different costs arise due to inflation (increasing prices) and why it makes sense to keep inflation at a moderate level, to maintain price stability respectively
Impact of monetary policy on industrial growthUdit Jain
The project describes the Impact of monetary policy on industrial growth. It covers the data of industrial analysis starting from 2004-05 to 2012-13 and finding the trend of monetary policies adopted by RBI on industry growth.
it is a full information for the students according to thrir examinations point of view about monetary policy and objectives,nature, instruments of monitary policy
Monetary policy is how a central bank acts in its economic environment. A central bank is a national (or, in the case of the European Central Bank, a supranational) institution. Mostly the primary goal is to maintain price stability. Another common goal is to support the economy if it does not inhibit the achievement of price stability to a risky extent. This chapter examines what different costs arise due to inflation (increasing prices) and why it makes sense to keep inflation at a moderate level, to maintain price stability respectively
Impact of monetary policy on industrial growthUdit Jain
The project describes the Impact of monetary policy on industrial growth. It covers the data of industrial analysis starting from 2004-05 to 2012-13 and finding the trend of monetary policies adopted by RBI on industry growth.
it is a full information for the students according to thrir examinations point of view about monetary policy and objectives,nature, instruments of monitary policy
Which life is better arrange or love marriageWedeterna
Arranged marriages are an integral part of Indian culture and tradition. Even today hundreds of couples enter into the sacred institution of marriage, with both the families choosing the better half, for them. A very recent trend that has surfaced is the concept of self arranged marriage.
Report ON Arrange Marriage
Introduction: In an arranged marriage, the bride and groom are selected by a third party rather than by each other. It is especially common in royal families around the world. Today, arranged marriage is largely practiced in South Asia (India, Nepal, Pakistan, Sri Lanka)Africa, the Middle East, and Southeast Asia and East Asia to some extent.
As we Known, Arranged marriages are usually seen in Indian, Southeast Asian and African cultures, especially among royalty, and are usually set up by the parents or an older family member. The match could be selected by parents, a matchmaking agent, matrimonial site, or a trusted third party. In many communities, priests or religious leaders as well as relatives or family friends play a major role in matchmaking.
Process Of arrange marriage:
In an "introduction only" arranged marriage, the parents may only introduce their son or daughter to a potential spouse. From that point on, it is up to the children to manage the relationship and make a final choice. There is no set time period. This is common in the rural parts of South America and especially in India and Pakistan. The same also occurs in Japan. This type of arranged marriage is very common in Iran under the name of khastegari.
“An arranged marrige is a marrige that is arranged by someone other than those who are marrying”.
History In india:
1. History of Arranged Marriage in India “First comes marriage, then comes love.” Esthela Caito History 141 Arguello.
2. - The concept of arranged marriage in India has gone through many changes over time. Arranged marriages have been important in Indian culture since the fourth century. Arranged marriages are marriages that are set up by people other than those who are getting married. -The individuals who set up the marriage may be the parents, match making agents, matrimonial websites, or a trusted third party.
3. -Early in history, girls were married before they even reached puberty. -This was so that the girl would be married before she’d lose her virginity. Classical orthodox Hinduism came about in ca. 500 BC and this was a time when there was great emphasis on patriarchy and caste rules. Arranged marriages took place so that women would be placed under theauthority of a male. When a girl is a child, the father has authority over her, when the woman is married, the husband has authority over her, and when she is of old age, her sons have authority over her.
4. - In the modern period, the number of arranged marriages has lessened a little as social reforms have taken place & love marriages have become more popular. These days, Indian women can do well economically after independence of their parents. They are also well educated. A love marriage is one in which two people will decide to get married because they both have love and affection for one another and feel a sense of commitment and attraction. The partner does not have to be Indian in a love marriage.
This presentation shows a basic background on the monetary policy in Bangladesh showing the key features of the monetary policy introduced by Bangladesh Bank.
2022 Navigate Uncertainty with the Right Asset AllocationQuantum Mutual Fund
Through this deck, find how to navigate uncertainty with prudent asset allocation by dividing investments across equity, debt and gold asset classes to help achieve your goals and minimize downside risks
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*Importance of bonds and interest rates in the macro economy.
*Structure of interest rates in Sri Lanka
*Current interest rate environment
*Relationship between interest rates and bond prices
*Importance of interest rates and bonds in setting monetary policy
Macroeconomic basic concepts like Inflation, BOP, Monetary policy, Fiscal Policy and Exchange rate. Remade this presentation for the Macroeconomics class in Prezi which looks better, but this ones fine too.
You are welcome to review our Q4 2012 Lagos Real Estate Investment Report. MCORE is a project finance company focused on providing financing, investment, management and trading services to the real estate, construction, infrastructure, energy and commodity sectors.
Quantative Tightening - A Leviathan Awakens - Blake Huber.pdfBlake Huber
Increases in the Fed Funds rate should not be feared by asset markets. Quantitative Tightening ("QT) is little understood, but is the primary force with which investors should be wary.
2. 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
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3. To ensure a stable currency value
Price stability
Economic stability or full employment
Rapid economic growth
Balance of payments equilibrium
Greater equality in distribution of
income & wealth
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4. To maintain continuously low rate of interest
To create a continuous market for
government securities
To provide credit at differential rate of interest
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5. There is convergence of views in developed and
developing economies, that price stability is the
dominant objective of monetary policy.
Price stability does not mean complete year-to-year
price stability which is difficult to attain.
Price stability refers to the long run average stability
of prices.
Price stability involves avoidance of both inflationary
and deflationary pressures.
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6. Price Stability contributes improvements in the
standard of living of people.
It promotes saving in the economy while
discouraging unproductive investment.
Stable prices enable exports to compete in
international markets and contribute to the
strengthening of BoP.
Price stability leads to interest rate stability, and
exchange rate stability (via export import stability).
It contributes to the overall financial stability of the
economy.
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7. It depends mainly on two factors
1. level of monetized economy
2. level of development of capital
market
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8. Expansionary policy
expansionary policy increases the total supply of money in
the economy
used to combat unemployment in a recession by lowering
interest rates.
Contractionary policy
contractionary policy decreases the total money supply
involves raising interest rates in order to combat inflation
increasing interest rates slows the economy by making funds
more expensive to firms, and promotes consumer savings
which decreases revenues by firms.
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9. Open market operations
Bank rate
Variable reserve ratio
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10. Open Market Operations involve buying
(outright or temporary) and selling of
government securities by the central
bank, from or to the public and banks.
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11. Open-Market Operations
Buying Securities
From commercial banks...
Bank gives up securities
RBI pays bank
Banks have increased reserves
From the public...
Public gives up securities
Public deposits check in bank
Banks have increased reserves
Buying increases the money supply and lowers
rates
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12. Selling Securities
To commercial banks...
RBI gives up securities
Bank pays for securities
Banks have decreased reserves
To the public...
RBI gives up securities
Public pays by check from bank
Banks have decreased reserves
Selling decreases the money supply and
increases rates
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13. Banks are required to maintain a certain
percentage of their deposits in the form of
reserves or balances with the RBI
It is called Cash Reserve Ratio or CRR
Since reserves are high-powered money or
base money, by varying CRR, RBI can reduce
or add to the bank’s required reserves and
thus affect bank’s ability to lend.
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14. Raising the Reserve Ratio
Banks must hold more reserves
Banks decrease lending
Money supply decreases
Lowering the Reserve Ratio
Banks may hold less reserves
Banks increase lending
Money supply increases
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15. Discount rate is the rate of interest charged by the
central bank for providing funds or loans to the banking
system.
Funds are provided either through lending directly or
rediscounting or buying commercial bills and treasury
bills.
Raising Bank Rate raises cost of borrowing by
commercial banks, causing reduction in credit volume to
the banks, and decline in money supply.
Variation in Bank Rate has an effect on the domestic
interest rate, especially the short term rates.
Market regards the increase in Bank rate as the official
signal for beginning of a tight money situation.
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16. Instruments
1. Discount Rate
(Bank Rate)
2.Reserve Ratios Operating
Target
3. Open Market
Operations
• Monetary Base
• Bank Credit Intermediate
• Interest Rates Target
•Monetary
Aggregates(M3)
Ultimate
•Long term Goals
interest rates
•Total Spending
• Price Stability
Etc.
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17. Credit Rationing
Change in lending margins
Moral Suasion
Direct Controls
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18. MONETARY POLICY AND EQUILIBRIUM GDP
Sm1 Sm2 Sm3
Investment
Demand
Real rate of interest, i
10 10
8 8
6 6
Dm
0 0
Quantity of money demanded and supplied Amount of investment, i
AS If the Money Supply
Increases to Stimulate
the Economy…
Interest Rate Decreases
Price level
P3
Investment Increases
P2 AD & GDP Increases
P1 AD3(I=$25) with slight inflation
AD2(I=$20) Increasing money supply
AD1(I=$15) continues the growth –
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Real domestic output, GDP
NVK
but, watch Price Level. 18
19. Time lag
1. Recognition lag
2. Action lag
3. Effect lag
Problem in forecasting
Non Banking financial Intermediaries
Under development of money and Capital
Markets
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