Concept of Monetary Policy

Monetary policy is one of the successful macro-economic policies. It has important role for in general economic management and growth. Monetary policy is the work out of the central bank to control over the money supply as a tool for achieving the objectives of universal economic policy. Monetary policies attempt to make different types of […]

MONETARY POLICY

   Concept of Monetary Policy Monetary policy is one of the successful macro-economic policies. It has important role for in general economic management and growth. Monetary policy is the work out of the central bank to control over the money supply as a tool for achieving the objectives of universal economic policy. Monetary policies attempt […]

Implication/Objectives of Fiscal Policy

Fiscal policy plays a dynamic role in developing countries. The monetary policy alone ineffective due to the existence of underdeveloped money and capital markets, fiscal policy can be used as an important adjusts to monetary policy in accelerating the rate of capital formation. In modern time, optimum allocation of resources, price stability, equitable distribution of […]

Concept of Fiscal Policy

Fiscal policy is concerned with the revenue and expenditure of the government, which is careful as a powerful device for stabilization. It refers to the budgetary policy of the government. This has become an extremely important tool of the government to preserve economic stability, economic growth, high employment, and balance of payments equilibrium. The major […]

  Purpose of Fiscal Policy

    In modern times, the objectives of fiscal policy are as follows: (i)   Best possible provision of Resources: One of the main objectives of fiscal policy in developing countries is to mobilize economic resources. It should be formulated so as to secure use and optimum allocation of economic resources like money, men and material. This […]

FISCAL POLICY

Concept of Fiscal Policy Fiscal policy is concerned with the revenue and expenditure of the government, which is careful as a powerful device for stabilization. It refers to the budgetary policy of the government. This has become an extremely important tool of the government to preserve economic stability, economic growth, high employment, and balance of […]

Cost-Push Inflation

Cost-push inflation is also called “supply shock inflation”, caused by drops in aggregate supply due to increased prices of inputs, for example. Take for instance a sudden decrease in the supply of oil which would increase oil prices. Producers for whom oil is a part of their costs could then pass this on to consumers […]

Demand Pull Inflation

Demand-pull inflation caused by increase in aggregate demand due to increased private and government spending, etc. Demand-pull inflation is constructive to a faster rate of economic growth since the excess demand and favorable market conditions will stimulate investment and expansion. The demand-pull inflation occurs when the aggregate demand exceeds the available supply of goods and […]

Remedies or measures to Control Inflation

Today most central banks are tasked with keeping inflation at a low level, normally 2 to 3% per annum within the targeted low inflation range which could range from 2 to 6% per annum. It has been noted that inflation inflicts much suffering on the helpless people and disrupts society economically, socially, morally and politically. […]

Effects of Inflation

             An increase in the general level of prices implies a decrease in the real value of money. That is, when the General level of prices rises, each monetary unit buys fewer goods and services. Many people are willing to accept inflation if it can provide full employment because then it is a small price […]