Monetary policy alone cannot save Indian economy Main Limitations of the Monetary Policy adopted by the Reserve Bank of India 1. Huge Budgetary Deficits : RBI makes every possible attempt to control inflation and to balance money supply in the market. However Central Government's huge budgetary deficits have made monetary policy ineffective. Huge budgetary deficits have resulted in excessive monetary growth. 2. Coverage Of Only Commercial Banks : Instruments of monetary policy cover only
Words: 1494 - Pages: 6
government. Comment on the most common indicator of sovereign risk with current examples. Spain's Government Bond Yield for 10 Year Notes rallied 58 basis points during the last 30 days which means it became more expensive for Spain to borrow money from investors. During the last 12 months, Spain government bond yield advanced 1.19 percent. Historically, from 1993 until 2012, Spain Government Bond 10Y averaged 5.7 Percent reaching an all time high of 12.7 Percent in January of 1993 and a record
Words: 5678 - Pages: 23
If interest rates are very low and the Bank’s Monetary Policy Committee expects inflation to fall below the Government’s 2% target, quantitative easing can inject money directly into the economy to boost spending (Wieland, 2009). The way quantitative easing works: - Through the commercial banking system, central bank use money to buy bond with low risk, low interest rate and low loan - Central bank buy directly bonds from business, financial markets (pension fund, insurance companies, etc…)
Words: 1682 - Pages: 7
table stating some of the economic factors that may affect Apple. China United Kingdom GDP China GDP is worth 5879 billion dollars or 9.48% of the world economy, according to the World Bank. from 1960 until 2010, China's average GDP was 839.37 billion dollars reaching a massive rate 5878.63 billion dollars in December of 2010 and a record low of 46.46 billion dollars in December of 1962 The United Kingdom GDP is worth 2246 billion dollars or 3.62% of the world economy, according to the World Bank
Words: 1644 - Pages: 7
pose a greater challenge to nations. Terrorists conduct their activities with the aim of destruction. The fear of terrorism is looming large in our daily life. There are innumerable incidents of such fear and insecurity. Terrorists attacks has its impact globally –be it tourism, Gross domestic product, medical industry, productivity, aviation industry, stock market etc. Terrorism creates feeling of hatredness, frustration and panic in the society with the main objective of destruction in the opposition
Words: 7635 - Pages: 31
The Role of Aggregate Demand and Supply Shocks in a Low-Income Country: Evidence from Bangladesh Omar H.M.N. Bashar The Journal of Developing Areas, Volume 44, Number 2, Spring 2011, pp. 243-264 (Article) Published by Tennessee State University College of Business DOI: 10.1353/jda.0.0095 For additional information about this article http://muse.jhu.edu/journals/jda/summary/v044/44.2.bashar.html Access Provided by Bangladesh University of Professionals at 05/29/11 5:42AM GMT THE ROLE
Words: 8517 - Pages: 35
the money supply, but it decided to reduce the pace of new purchases of assets, as a reaction to the recent economic growth. With this policy, FED will continue to buy assets but in a more moderate way so there will be less money injected in the economy. This means that the money supply
Words: 1010 - Pages: 5
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
Words: 3927 - Pages: 16
Electricity and power supply * Illiteracy * Industrial development * Poverty * Income * Government impact The performance and growth totally depends upon the growth and development of all the states. If all the states individually will perform well then naturally India will do well. 1. Population :- It plays a major role in the development and growth of the region. Higher the population it will be difficult for the state to maintain the GDP rate and also unemployment
Words: 2135 - Pages: 9
malnutrition, illiteracy and poverty is multiplying manifold. India is a country which has prosperity on one side of the coin and poverty on the other. It is the stark impact of poverty that hinders the growth of the country. Gone are the days when India used to be a famine land and had to rely on the Americas for the supply of PL wheat. With the advent of the Green revolution, India, not only eliminated famine but also increased its food production and became self-sufficient in food grains
Words: 1512 - Pages: 7
