Monetary Policy

What are the key principles underlying the monetary policy transmission mechanism? How do commercial banks and non-banking financial institutions contribute to the transmission of monetary policy in the economy?

Introduction Monetary policy is the process by which a country’s central bank controls the money supply and interest rates to achieve macroeconomic objectives such as inflation control, economic growth, and employment. The effectiveness of monetary policy depends on its transmission mechanism – the channels through which policy decisions affect the broader economy. Both commercial banks […]

What are the key principles underlying the monetary policy transmission mechanism? How do commercial banks and non-banking financial institutions contribute to the transmission of monetary policy in the economy? Read More »

What are the different kinds of risk associated with financial transactions? How do financial and economic factors interact during a crisis? What policy options can be used to fight a recession? Explain with the help of financial crisis of 2008

Introduction Financial transactions are at the core of economic activity, but they carry various forms of risk that can affect investors, businesses, and economies. Understanding these risks is crucial for effective financial planning and policy formulation. Furthermore, the interaction between financial and economic factors becomes highly significant during periods of crisis, such as the Global

What are the different kinds of risk associated with financial transactions? How do financial and economic factors interact during a crisis? What policy options can be used to fight a recession? Explain with the help of financial crisis of 2008 Read More »

What do you understand by the term ‘Macro Economic instabilities’? Which policy instruments would you like to suggest for stablishing an economy suffering from macroeconomics shocks?

Introduction Macroeconomic stability is essential for sustained growth, employment, and social welfare. When this stability is disrupted, the economy experiences macroeconomic instabilities, leading to volatile growth, inflation, unemployment, or external imbalances. Understanding the causes of such instabilities and the policy tools to address them is vital for economic governance. What are Macroeconomic Instabilities? Macroeconomic instabilities

What do you understand by the term ‘Macro Economic instabilities’? Which policy instruments would you like to suggest for stablishing an economy suffering from macroeconomics shocks? Read More »

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