monetary policy ( bharat kumar sattar)

1. central bank to control money supply to achieve macroeconomic goals

2. maximizing the potential of money available

2.1. Illegal money market should be stopped

2.2. Loans from formal system is risk less

3. In simple term: Every one should be included in formal financial system

4. open market operations: CRR SLR REPO REVERSE REPO etc..

4.1. government to banks and from banks to people

5. Rbi intrest is managing liquidity and inflation

5.1. Effective tool for controlling society

6. More easing of monetary policy at the time of elections

6.1. 1 year: easing monetary policy

6.2. 2,3,4th year: contraction

6.3. 5 year :complete easing for social schemes

7. demand pull and cost push inflation can be controlled

7.1. for demand pull: money should be sucked from society

7.2. for cost push: more tax intensives should be given so that industry hurdles will be reduced

8. Depends on american fed reserves