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Managerial Economics: Presentation On

The document provides information about managerial economics and monetary policy in India. It discusses the objectives, types, instruments and current monetary policy of the Reserve Bank of India, including maintaining full employment, price stability, economic growth and balance of payments.

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Harish Inglikar
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21 views

Managerial Economics: Presentation On

The document provides information about managerial economics and monetary policy in India. It discusses the objectives, types, instruments and current monetary policy of the Reserve Bank of India, including maintaining full employment, price stability, economic growth and balance of payments.

Uploaded by

Harish Inglikar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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PRESENTATION ON

MANAGERIAL ECONOMICS

MBA DEPARTMENT
Presented By
Pooja Billur
Nivedita Badiger
Arun Naduvinmani
Janaki karadigudd
Chidambar
To,
Dr. S . M . Porapur
MONETARY POLICY

Monetary policy is the macroeconomic


policy laid down by the central bank. It invovles
management of money supply and interest rate and is the
demand side economic policy used by the government of a
country to achieve macroeconomic objectives like inflation,
consumption, growth and liquidity.
OBJECTIVES OF MONETARY POLICY
In india, the central monetary authority is the
Reserve Bank Of India(RBI). Monetary policy is
designed to maintain the following objectives.
 Full employment
 Prices stability
 Economic growth
 Balance of payments
Full Employment :
Full employment has been ranked among the
foremost objectives of monetary policy. It is an important goal
not only because unemployment leads to wastage of potential
output, but also because of the loss of social standing and
self-respect.

Price Stability:
Once of the objectives of monetary policy is to
stabilise the price level. Both economists and laymen favour
this policy because fluctuations in price bring uncertainty and
instability to the economy.
Economic Growth:
One of the most important objectives of monetary
policy in recent years has been the rapid economic growth of an
economy. Economic growth is defined as “process whereby the
real per capita income of a country increases over a long period
of time.”

Balance of Payments:
Another of objective of monetary policy since 1950s has
been to maintain equilibrium in the balance of payments.
BOP is the record of all transactions between resident
of the country and rest of the world during a particular period.
Types of Monetary Policy
1)Expansionary Monetary Policy:
The expansionary monetary policy is adopted
when the economy is in a recession, and the
unemployment is the problem. The expansion policy is
undertaken with an aim to increase the aggregate
demand by cutting the interest rates and increasing the
supply of money in the economy.

2)Contractionary Monetary Policy:


The contractionary monetary policy is applied
when the inflation is a problem and economy needs to
be slow down by curtailing the supply of money. The
inflation is characterized by increased money supply
and increased consumer spending.
Instruments of Monetary Policy
A) Quantitative B) Qualitative
 Bank Rate Policy  Rationing of Credit
 Legal Reserve Ratios  Regulation of Consumer
 Cash Reserve Ratio Credit
 Statutary Liquidity Ratio  Change in Marginal
 Open Market Operations Requirement
 Reserve Repo Rate  Moral Suasion
 Final Thoughts
Present Monetary Policy(2020-21)
 RBI maintains status quo fifth time in a row on policy rate;
keeps repo unchanged at 4%.

Central bank to maintain accommodative monetary policy


stance to support growth, keep inflation at targeted level.

RBI retains economic growth for 2021-22 fiscal’s first


monetary policy.

RBI to ensure orderly conduct of government borrowing;


preserve financial stability.

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