Measurements of Macroeconomic Aggregates – E

Measurements of Macroeconomic Aggregates – D

Measurements of Macroeconomic Aggregates – C

Measurement of Macroeconomic Aggregates -B

Measurements of Macroeconomic Aggregates–A


Contraction Monetary Policy to manage Inflation

When aggregate demands rises sharply due to large consumption and investment expenditure or more importantly, due to the large increase in government expenditure relative to its revenue resulting in huge budge deficits, a demand-pull inflation occurs in the economy. Besides, when there is too much creation of money for one reason or the other, it […]

Expansionary Monetary Policy to manage Recession or Depression

When the economy is faced with recession or involuntary cyclical unemployment, which comes due to fall in aggregate demand, the central bank intervenes to cure such a situation. Central bank takes steps to expand the money supply in the economy and lower the rate of interest with a view to increase the aggregate demand that […]

Importance/Objectives of Monetary Policy in Developing Countries

The citizen like inflation, deflation, lack of employment opportunity, investment, output income etc defines developing country as a country where different types of economical and social harms are facing. In developing countries various types of economical problems are solved through the monetary policy. Monetary policy influences most of all inexpensive variables and activities through change […]

Objectives of Monetary Policy

Monetary policy is one of the great tools to stabilize the economic systems. It contains the following objectives: (i)   Price constancy: The most important objective of monetary policy is to establish internal price stability. Stable price does not means that the average of prices on the general price level should not be allowed to fluctuate […]