The discourse on the need to separate debt management and monetary policy is doing rounds for quite a time. The view was even endorsed by the committee on capital account convertibility in 1996 because of the possible conflict of interest between monetary policy and debt management. Why the issue went to backburner? When Bimal Jalan ..
The Monetary Policy Committee (MPC) is the body of the RBI headed by its Governor. The body is responsible for taking the important monetary policy decisions for determining the repo rate. The Monetary policy committee is a statutory body established under the provisions of RBI act 1934. The functions of the committee are: The main ..
Economic Survey 2016-17: Chapter-05: Fiscal Framework: The world is changing should India change too ?
In this chapter, the survey has reviewed the trends in fiscal policies around the world, comparing with those of India and done a critical assessment of India’s fiscal activism and FRBM Act of 2003. It also tries to provide an insight into what should India’s fiscal policy ahead. Fiscal Activism We all understand that monetary ..
Anything that can be generally acceptable as payment for goods and services or settlement of debts is Money. It is the element of confidence that others will accept it as a payment is what gives the purchasing power to money. The major functions of money are: It a medium of exchange Its a unit of ..
How the recent move of Government to form a monetary policy committee (MPC) to decide upon the monetary policy would encroach the autonomy of RBI? Explain the significance, composition and terms of condition of MPC?