...Y V Reddy: Fiscal policy and economic reforms Address by Dr Y V Reddy, Governor of the Reserve Bank of India, at the National Institute of Public Finance and Policy (NIPFP), New Delhi, 26 May 2008 (edited transcript). * * * Respected Professor Govinda Rao and distinguished scholars, I am honoured by my friend, Prof. Govinda Rao’s, kind invitation to me to visit the National Institute of Public Finance and Policy (NIPFP). I had the opportunity of working very closely with the NIPFP on several occasions. Apart from my personal affinity to the NIPFP, there is a close relationship between the Reserve Bank of India (RBI) and the NIPFP, from an institutional point of view also. For instance, Prof. Govinda Rao is a Member of the Southern Local Board of RBI. Initially, I thought of speaking on fiscal policy and economic reforms from a central banker’s perspective. I realised later that while I have been working as a central banker over the last one decade, I had worked for most parts of the three decades prior to that in the Ministry of Finance, in the Government of India as well as in the Government of Andhra Pradesh. So it was a difficult choice for me as to whether I should give a fiscal view of the monetary policy or a monetary view of the fiscal policy. I have worked for a short period in the World Bank, which gives a global governments’ view and also in the IMF, which gives a global monetary authority’s view. As a via-media, I have opted to give a practitioner’s perspective...
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...Monetary Policy of Bangladesh Lecture Synopsis: 2 NSU, MBA Program Dr. Salehuddin Ahmed(Sld) BUS 530 (Section – 1 & 2); SPRING, 2013 Introduction Both in developed and developing economies, monetary policy seeks to maintain price stability accompanied by sustained stable output growth in the face of internal and external shocks that are faced from time to time. For developing economies like Bangladesh with significant underemployment/under exploitation of production factors, stimulating higher growth is imperative for rapid reduction and eventual elimination of endemic poverty, and is therefore an overriding priority. The stimulus provided by monetary policy in accommodating the growth aspirations must not however jeopardize macroeconomic stability and future growth; and the pursuit of monetary policy comprises of various supportive measures to attain the highest sustainable output growth while adjusting smoothly to internal and external shocks that the economy encounter from time to time. History and Objectives of Bangladesh Monetary Policy Objectives of the monetary policy of the Bangladesh Bank as outlined in the Bangladesh Bank Order, 1972 comprise of attaining and maintaining of price stability, high levels of production, employment and economic growth. In the decades of seventies and eighties, monetary policy in Bangladesh was conducted with full direct control on interest rates and exchange rates, as also on the volumes and directions of credit flows...
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...NAME Page no Introduction Introduction Rational of the study 01 Objective of the study 02 Scope of the study 02 Methodology of the study 02 Limitations of the study Chapter- 01 01 02 Body of the term paper Monetary Policy Reason of publishing 04 Types of Monetary Policy 05 Monetary Policy in Bangladesh 06 Tools & Strategy of Monetary Policy 06 Major tools used by Bangladesh Bank 07 Policy Target 12 Limitations of Monetary Policy 13 Findings of the study Chapter-03 03 Scope & Objective of Monetary Policy Chapter- 02 03 14 Conclusion 14 Bibliography 14 Chapter- 01 Introduction “Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by loIring interest rates in the hope that easy credit will entice businesses...
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...The Growth Record of the Indian Economy, 1950-2008: A Story of Sustained Savings and Investment Rakesh Mohan* I deem it a real privilege to visit the Institute of Economic Growth to deliver the keynote address at this prestigious conference on growth and macroeconomic issues and challenges in India. I am particularly happy that this Conference is being organised by the Institute as a part of its Golden Jubilee celebrations. The Institute has established a long and creditable track record of contributing to economic research consistently over its 50 years history. Its research has greatly enriched the debate on the conduct and formulation of economic policy over the years. The theme selected for the conference is befitting in the present context as we grapple with issues and challenges for sustaining the elevated growth momentum that we have now achieved. This has assumed added contemporary significance in the wake of expected moderation in global growth due to a projected slowdown in the US and some other advanced economies. Whereas emerging markets, including India have so far not been greatly affected by the financial turbulence in advanced economies, the increasing global uncertainties need to be watched and guarded against appropriately. Although our growth process continues to be dominated by domestic factors, we need to recognise some changing global patterns, which could have implications for the macroeconomic prospects of the Indian economy. Accordingly, in my address...
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...Objectives of the paper: With giving an overview of what the monetary policy really is and narrating how the central bank formulates the monetary policies and takes the necessary steps for its implementation in Bangladesh, this paper targets to analyze the impact of monetary policy on the inflationary situation. Methodology: The study depends on I. Extensive literature review of external sources on central banks on formulation and implementation ofmonetary policy for the country II. Publications of Bangladesh Bank Scope of the paper: 1. First of all, monetary policy is a deep sea to swim through. Though Bangladesh practices and implements a limited number of instruments, the mix is always complex to grab the main idea behind it. Extensive analysis of the mix is beyond the scope of the paper. 2. Framing of indices of central bank policies is beyond the limit of this paper. 3. Structured data is hard to collect from the departments of Bangladesh Bank, so complex calculations and data analysis is deliberately avoided. Bangladesh Bank (BB): The central bank of the country, was established as a corporate body by the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16 December, 1971 by acquiring the liabilities and assets of erstwhile State bank of Pakistan in East Pakistan. Bangladesh Bank is the central bank of the country | | There is a cross departmental committee on monetary policy (MPD) headed by a deputy governor, which includes...
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...RESPONSE AND IMPACT * LESSONS FROM THE CRISIS * MEDIUM- TERM ISSUES AND CHALLENGES GLOBAL FINANCIAL CRISIS * Proximate causes & Fundamental causes * Current account balance * US monetary policy Policy 1: * Volatility in monetary policy in advanced economies. * Large volatility in capital flows to EMEs. Policy 2 : * US Monetary policy too loose during 2002-04; aggregate demand exceeded output; large current a/c deficit; mirrored in large surpluses in China and elsewhere. Policy 3 : * Large Fed cuts in 2007: strong boost to oil, other commodity and asset prices * Capital Flows to Emerging Market Economies * Worsening Global Economic Outlook DIFFERENCES BETWEEN FINANCIAL CRISIS IN US/EUROPE AND INDIA * What has not happened in India : * No bank losses threatening capital * No bank credit crunch * No mistrust between banks * Our Problems : * Reduction in capital flows * Stock markets * Monetary and liquidity impact * Fiscal stress * Oil, Fertiliser, Food subsidies * Pay Commission, Debt waiver, NRE * GFD/GDP ratio: 5.5-6.0% * India’s Approach to Managing Financial Stability: * Current account: Full, but gradual opening up * Capital account and financial sector RBI’S POLICY, RESPONSE AND IMPACT * Expanding rupee liquidity * Reduction in CRR (400 bps) & SLR (100 bps) ...
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...United Kingdom t: +44 20 7551 9000 f: +44 20 7551 9090 e: euroinfo@datamonitor.com Americas 245 5th Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Asia Pacific Level 46 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8088 7405 e: apinfo@datamonitor.com Canon Inc. ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries...
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...RBI’s Monetary Policy Review for September 2015 In its Monetary Policy Review of September 2015, the RBI cut the Repo rate by 50 basis points from 7.25 percent to 6.75 percent. It kept the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio(SLR) unchanged at 4 percent and 21.5 percent respectively. Due to the change in the Repo rate, the Reverse Repo rate and the Marginal Standing Facility were also adjusted to 5.75 percent and 7.75 percent respectively. This was a surprise, as the market expected only 25 bps. Further, the RBI governor also said that the stance will be accommodative (‘dovish’), implying that some more cuts may be in the offing. RBI also announced that the limits for Foreign Portfolio Investment (FPI) in central government securities will be: - Denominated in rupees,and Increased in phases to 5 per cent of the outstanding stock by March 2018. Impact of Rate Cut on Indian Economy 1. Home Loans to be cheaper- As a result of the rate cut, Home loans will cost less and the banking and finance companies will bring down the rates to attract more customers. 2. Auto sector to achieve sales growth- The rate cut will enable the auto sector to achieve 15-20 percent of the sales growth as 65 percent of the car sales are financed and more new customers will also be attracted towards a vehicle loan. 3. Increasing Demand in Real-Estate Sector- The rate cut will enable the banks to pass on the benefit to home loan borrowers which will result...
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...time banks have transformed from merely money generating organizations to a multi tasking entity. In this paper, we shall deal with the role of banks in the context of the world economy as well as the Bangladesh economy . The first section will illustrate the functions of a bank along with its classification. In the second section, we shall discuss the role of a banks as a major component of the service sector rendering to the economy as a whole. In the third section, we would like to empirically validate our hypothesis with a comprehensive data analysis. The recession in the US market and the global meltdown termed as Global recession have engulfed complete world economy with a varying degree of recessional impact. World over the impact has diversified and its impact can be observed from the very fact of falling Stock market, recession in jobs availability and companies following downsizing in the existing available staff and cutting down of the perks and salary corrections. Various steps taken by Bangladesh Bank to curb the present recession in the economy and counter act the prevailing situation. The sudden drying-up of capital inflows from the Security exchange which were invested in Bangladeshi stock markets for...
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...small savings accounts used by payments and remittance to migrant workforce, low income households, small businesses, at lowest costs. The payment banks, as the concept is more advanced and visionary, moreover having less risks in activities, will lead to rising competitive intensity (higher savings interest rates and service standards) in the banking system, particularly for PSU banks in non-urban centres. It could be uneconomical for traditional banks to open branches in every village but the mobile phones coverage is a promising low-cost platform for quickly taking basic banking services to every rural citizen. The impact on private sector banks will be minimal because they have already made strong investments in technology. But there could be an impact on small and medium public sector banks as incremental deposit growth and market share will see some impact from payment banks, especially in the rural and semi-urban areas. Moreover, the public sector banks are also seeing their current and savings account (Casa) deposit share slowing...
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...Cortina dʼAmpezzo Venice Portofino Cinque Terre Two photographers, Italy and the D80 Photographers from different fields share their impressions after shooting with the D80 on a trip to Italy. About shooting in Italy - H (Hien): Iʼ ve long dreamed of shooting in Venice. As a photojournalist, I always strive to convey the moment just as I see it with my own eyes. This demands a great amount of footwork to get acquainted with the location, and the time to establish a rapport with the locals. Shooting early in the morning with the D80 left an immediate impression on me. There was limited light, and that was comprised of a mixture of natural and artificial light. A film camera in such a situation requires complicated use of filters, whereas the D80 was able to achieve accurate white balance and metering under mixed light sources and produce beautiful results. Y (Yves): I believe shooting in the cafe allowed m e t o c l e a r l y ex p r e s s m y f e e l i n g s a b o u t the location. I am always exploring how best to express myself based on the inspiration I draw from the actual scene. And for me, the light is the inspiration. I like to control the light in each shot, which of course includes capturing the mood of the natural light, while at times also taking advantage of reflected light or using flashes. The D80 produced images just as I envisioned them, performing perfectly throughout the trip. Images from the D80 are of the highest quality, and I can edit them freely after...
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...Nikon Part I: Data collection I. Mission statement: CSR Policy: For the Nikon Group, fulfilling CSR means embodying its corporate philosophy: "Trustworthiness and Creativity." We are aiming to contribute to sustainable development by living up to the trust we are given by society, and also by creating more value than expected. As a common plan of action for the entire Group we have adopted "Our Aspirations," which were formulated through a project discussion in which both top management and employees participated, and "Our Commitments," which are made to realize those aspirations. We are also working to increase CSR awareness among each and every employee through the Nikon CSR Charter, which is Nikon Group's basic policy on social responsibility, and the Nikon Code of Conduct, which is our code for daily business activities. Furthermore, we participate in the UN Global Compact, and support its Ten Principles regarding Human rights, Labour, Environment, and Anti-corruption. Diversity: The Nikon Group employs people with a diverse range of backgrounds. By respecting their diversity and human rights and by treating them fairly, our basic policy is to develop an environment in which employees can make the most of their abilities and produce results as a team. We currently focus on efforts in Japan, such as supporting the progress of women in the workplace and assisting people with disabilities. Nikon Corporation pursues a basic policy under which it develops systems...
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...Owner, Service Manager, CSI Manager, Service Owner Knowledge Management Process Owner Reporting Analyst Service Measurement and Reporting Goal To monitor services and report on improvement opportunities Activities Service Measurement •Objective (Availability, Reliability, Performance of the Service) •Developing a Service Measurement Framework •Different levels of measurement and reporting •Defining what to measure •Setting targets •Service management process measurement •Creating a measurement framework grid •Interpreting and using metrics •Interpreting metrics •Using measurement and metrics •Creating scorecards and reports •CSI policies Service Reporting •Reporting policy and rules Inputs SLA Targets, SLRs, OLAs, Contracts Outputs Service Improvement Program, SLAM Reports Roles Process Owner, Service Manager, CSI Manager, Service Owner Knowledge Management Process Owner Reporting Analyst Service Strategy Deming Cycle – Plan Do Check Act Goal The goal in using the Deming Cycle is steady, ongoing improvement. It is a fundamental tenet of Continual Service Improvement. Activities ITIL® V3 Continual Service Improvement Goal ITIL® V3 Continual Service Improvement...
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...Introduction A liquidity crisis may be created in the banking sector due to its over-reliance on domestic borrowing for implementing the annual development programme. If the government borrows hugely for implementing the ADP, the industrial sector will not get enough loans from the banking system, which will ultimately lead to a higher bank interest rate. The government is planning to borrow from banks of Tk 18,957 crore for meeting the deficit and spending in different sectors. The growth of the industrial sector will be hampered if the government does not stop borrowing from banks. Due to government borrowing banking sector is facing a great amount of liquidity crisis in the recent years. Liquidity crisis results in various problems to the economy. it rises interest rate, hinders economic growth, decreases confidence of banking people. So, it is one of the major responsibilities of the Bangladesh Bank to make proper steps to control liquidity crisis. What is liquidity? Liquidity refers to how quickly and cheaply an asset can be converted into cash. Money in the form of cash is the most liquid asset. Assets that generally can only be sold after a long exhaustive search for a buyer are known as illiquid. High liquidity means there is a lot of capital because interest rates are low, and so capital is easily available. Interest rates are very important in controlling liquidity. What Does Liquidity Crisis Mean? Liquidity crisis indicates a negative financial situation characterized...
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...ECONOMICS PROJECT REPORT ON INTEREST RATES AND INDUSTRIAL GROWTH (2009-10 to 2011-12) Submitted By: Mohana Goel (12DM077) Mohit Bhola (12DM078) Nidhi Dalal (12DM090) Nishant Raj (12DM097) Nishtha Chugh (12DM098) Piyush Chib (12DM102) CONTENTS 1. INDIAN ECONOMY:Overview 2. INTEREST RATES 3.1. MEANING 3.2. REAL vs NOMINAL INTERST RATES 3.3. TYPES OF INTEREST RATES 3.4. EFFECT OF INTEREST RATE RISE 3. MONETARY POLICY 4.5. MEANING 4.6. OBJECTIVE 4.7. TOOLS 4.8. IMPORTANCE 4. 2009-10 5.9. OBJECTIVE OF MONETARY POLICY 5.10. POLICY STANCE 5.11. ANALYSIS 5.12. OBSERVATION 5. 2010-11 6.13. OBJECTIVE OF MONETARY POLICY 6.14. POLICY STANCE 6.15. ANALYSIS 6.16. OBSERVATION 6. 2011-12 7.17. OBJECTIVE OF MONETARY POLICY 7.18. POLICY STANCE 7.19. ANALYSIS 7.20. OBSERVATION 7. CONCLUSION 8. RECOMMENDATION 9. BIBLIOGRAPH INDIAN ECONOMY: AN OVERVIEW India is a South Asian country that is the seventh largest in area and has the second largest population in the world. India covers an area of 3,287,240 square km and its population stands at 1.215 billion people in 2010. Understanding the Indian Economy Large, dynamic and steadily expanding, the Indian economy is characterized by a huge workforce operating in many new sectors of opportunity. The Indian economy is one of the fastest growing economies and...
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