The following points highlight the role of commercial banks in developing the economy. The roles are: 1. Accelerating the Rate of Savings and Capital Formation 2. Mobilisation of Resources and Granting of Adequate Credit for Development 3. Credit for the Priority Sectors 4. Involvement in Development Planning 5. Strengthening Institutional Facilities 6. Promoting Growth with Stability. Role # 1. Accelerating [...]
In this article we will discuss about the role of monetary policy in controlling inflation in developing countries. Monetary policy refers to that branch of economic policy which attempts to achieve the broad objects of policy — stability of employment and prices, economic growth and balance in external payments — through control of the monetary system and by operating on [...]
Tax policy plays two important roles in financing economic development. One is to maintain an economy at a higher employment level so that the saving capacity of the people is raised with an increase in income per head. The second is to raise the marginal propensity to save of the community as far above the average propensity to the maximum [...]