RBI MONETARY POLICY (Money, currency, interest rates) It refers to actions that the central banks take to pursue objectives such as price stability and maximum employment. Economic policy includes Monetary Policy and Fiscal Policy: Monetary policy Fiscal policy RBI GoI It refers to the actions that the central bank takes to pursue objectives such as price stability and maximum employment. It refers to govt’s revenue collection and spending decisions Money, currency, interest rates Taxation, public spending, public borrowing Fiscal policy is inspired by JM Keynes in response to the Great Depression. Objectives of fiscal policy: Private sector Public sector To incentivise the private sector to scale up their operation to directly or indirectly improve the economy of a country. Publi...
