The Changing Paradigm of Monetary Management in Emerging Economies – A Case of India
Journal Title: Scholars Journal of Economics, Business and Management - Year 2014, Vol 1, Issue 2
Abstract
Monetary management through monetary policy, in order to achieve the macroeconomic policy objectives of sustained economic growth, control of inflation and financial stability, remains a subject which still baffles economists. The objectives of monetary policy differ in advanced and emerging economies due to their structural differences. Besides, focusing on the objective of price stability, the advanced economies have now adopted a new objective of output stabilization, as high inflation is no more a problem in these countries. On the other hand, most Central Banks of EMEs pursue a multitude of objectives of the monetary policy, viz. price stability, full employment, economic growth and exchange rate stability. In India, RBI has been pursuing the objective of price stability with sustained economic growth, since high inflation has continued to plague Indian economy since independence. In the liberalized environment, monetary policy of RBI additionally began focusing on maintaining orderly conditions in money, securities and foreign exchange markets. The monetary policy objectives are attained through monetary targets, which differ from country to country. The paper highlights the role of monetary targets and the different targets being pursued by advanced as well as the EMEs. Instruments of monetary control and the monetary policy transmission mechanisms are also discussed, also pointing out the differences in these aspects in advanced as well as emerging economies. Keywords: Emerging Market Economies, Monetary Policy, Advanced economies
Authors and Affiliations
Dr. Meenal Sharma Jagtap, Sunil Kumar
Keywords
Related Articles
- EP ID EP383187
- DOI -
- Views 106
- Downloads 0
Dividend Announcements and Market Value of Shares in the Agricultural Companies Listed at the Nairobi Securities Exchange
Abstract:This study investigated the information value of dividend payout announcements and the market value of shares in the agricultural companies listed at Nairobi stock Exchange (NSE). It used a modified market model...
Individual Creativity as the Key to Entrepreneurship
With the advancement of technology knowledge and extensive flow of information, our society required skills by the help of which it can go along with the development of science and technology. The aim should be to foster...
The appraisal of Entrepreneurship and SME on Sustainable Economic Growth in Nigeria
This paper examines the appraisal of Entrepreneurship and Small and Medium Enterprises (SME) on Sustainable Economic Growth in Nigerian. Survey research design was adopted. Data obtained were analyzed with means and stan...
Creating Sustainable Employment in Nigeria: Leveraging on the Capacity of the Informal Sector
This paper throws up the challenging effect of unemployment on the sustainable existence of the Nigerian state. It reviews the contemporary measures adopted by the Nigeria government to solve the menace of unemployment,...
Role of Micro, Small and Medium Size Enterprises in Employment Generation and Their Contribution in the Indian Economy
Abstract: Micro, Small and Medium size Enterprises have been playing very important role in the Indian Economy. The study seeks to observe the growth of Micro, Small and Medium size Enterprises (MSME) in the Indian econo...