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Introduction - Understanding Monetary Policy (for UPSC CSE)
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This lesson starts the journey towards understanding the public finance - monetary and fiscal policy. This course will be dealing with monetary policy and in this course, Ayussh Sanghi provides an outline to monetary policy - definition and scope, its purpose, role of central bank in determining its monetary policy and much more.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi

Unacademy user
sir your teaching and explanation method very appreciable sir really i vety thankful to you thank you so much sir and i will really contribute money for aayush
Sir please provide courses on economy for hindi medium students as well
Marvelous course ayussh sir ..its really really helpful for covering the right strategy of economics . Requested you to upload more and more such an awesome courses.
Sir, you are the best. Awesome teaching. Request you to cover all the topics in such awesome way. Thank you.
sir series wise lecture kaha milenge.. starting se dekhna h

  2. ABOUT ME >Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer >Hit "Contribute to Ayussh" Follow me on: AyusshSanghi

  3. PURPOSE OF MONETARY POLICY Monetary Policy is all about stabilising the volatile prices. Price volatility is one of the challenges faced by most of the countries in the world. * In order to arrest the price fluctuations in the system the economic policies like monetary policy are used

  4. MONETARY POLICY k The role of the central bank of any country is decisive in the socio-economic front to ensure price stability which is caused by: inflation deflation Price stability is the pre-requisite condition for sustaining long term economic growth.

  5. MONETARY POLICY * The monetary mechanism, headed by the Central Bank of any country, is the way in which changes in the money supply affect the rest of the economy. * Good banking structure with strong central bank is essential to: control inflation and deflation and * maintain financial conditions for sustaining growth.

  6. WHAT IS MONETARY POLICY? * Monetary policy is the process by which: * the monetary authority of a country controls the supply of money * by targeting a rate of interest for the purpose of promoting economic growth and stability

  7. WHAT IS MONETARY POLICY? * The goals of MP is: * stabilise the prices and * reduce the unemployment levels

  8. TYPES OF MONETARY POLICY k Monetary policy is of various types: * Expansionary Monetary Policy * Contractionary Monetary Policy

  9. EXPANSIONARY MONETARY POLICY * When an economy adopts such MP, it's focus is to increase the total supply of money in an economy faster than usual. * EMP is used to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expand operations and provide more employment.

  10. CONTRACTIONARY MONETARY POLICY * When an economy adopts such a MP it's focus is to decrease the total supply of money in an economy * CMP is used when there is too much money supply in the economy * Too much money supply increases the problem of inflation. * In order to reduce inflationary impact central bank increases interest rates in the hope that credit will become difficult and MS will reduce.