Question

Discuss the role of monetary and fiscal policy after pwriod of econonc reform, stabalization policies and inflation

Answer 1

The Monetary Policy aims to maintain price stability, full employment and economic growth. ... The Fiscal Policy can be used to overcome recession and control inflation. It may be defined as a deliberate change in government revenue and expenditure to influence the level of national output and prices.

Answer 2

The objectives of monetary policy include ensuring inflation targeting and price stability, full employment and stable economic growth. 1. Monetary policy is the process by which a central bank (Reserve Bank of India or RBI) manages money supply in the economy.