Question

Aims and objectives of inflation in india

Answer 1

In the past Reserve Bank has often been criticised that it pursued the objective of controlling inflation and achieving price stability and neglected the objective of promoting economic growth. Monetary policy can promote economic growth through ensuring adequate availability of credit and lower cost of credit.

Answer 2

Aims and objectives of inflation in india

Explanation:

• Inflation is the rise in prices in the economy, the inflation rate in India is 5.5% as of 2019. The consumer price index considered as a measure for inflation of the country.  

• The factors that impact the inflation rate of any country include the demand, supply, domestic and external factors.

• Inflation impacts the monetary policy of the central bank, as banks work to control the price fluctuations which happen by sustained economic growth.  

• The supply of money is affected by inflation, which later on effects global trade. Thus RBI subsidizes the exports with a weak dollar exchange rate.

Learn more about the aims and objectives of inflation in india.

• brainly.in/question/6887601 answered by  PiyushSinghRajput1