In this article we will discuss about the general and conflicting objectives of monetary policy. General Objectives of Monetary Policy: (i) Neutrality of Money (ii) Exchange Stability (iii) Price Stability (iv) Full Employment (v) Economic growth (vi) Conflicting Objectives of Monetary Policy (vii) Conclusion- Choosing a suitable Objectives. Various objectives or goals of monetary policy are: (i) Neutrality of Money [...]
In this article we will discuss about:- 1. Meaning of Monetary Policy 2. Objectives of Monetary Policy 3. Ultimate Versus Intermediate Targets 4. Limited Scope 5. Role in Developing Countries 6. Role in Promoting Faster Economic Growth 7. Targets. Meaning of Monetary Policy: Monetary policy is concerned with the changes in the supply of money and credit. It refers to [...]
The question of effectiveness of monetary policy has three aspects- technical, theoretical and practical, (a) Technically the IS and LM curves serve as analytical tools for explaining the effectiveness of monetary policy. (b) Theoretically relativeness of monetary policy in comparison with fiscal policy is discussed by examining Keynesian and monetarist view on the subject, (c) Practically, various limitations or the [...]