“Impact of RBI Monetary Policy on Banks” A PROJECT SUBMITTED TO Prof. Mishu Tripathi Submitted By: Roll No. Name 21 Ambika Nadar 23 Nutan Panchal 25 Satyam Pandya Date of Submission: 7th Oct 2012 Management of Banks and Financial Services MFM SEM – V (Batch-: 2010 - 2013) [pic] ACKNOWLEDGEMENT As the saying goes‚ man is
Free Monetary policy Inflation Central bank
nation. There are many tools to stabilize the economy and reduce the frequency and the altitude of economic fluctuations. Among these tools are the fiscal policy and monetary policy. This report discusses the fiscal policy and why the governments use this too to stabilize the economy and encounter the economic fluctuations. Definition Fiscal policy is a macroeconomic tool used by the government through the control of taxation and government spending in an effort to affect the business cycle and to
Premium Public finance Macroeconomics Keynesian economics
AN EMPIRICAL ANALYSIS OF MONETARY POLICY AND PRIVATE SECTORLED INVESTMENT IN NIGERIA‚ 1986-2011. BY EZIE OBUMNEKE Department of Economics Bingham University‚ Karu‚ Nasarawa State 08069430911 eobumneke@yahoo.com 1 ABSTRACT This study undertakes an empirical analysis of the impact of monetary policy measures on private sector-led investment in Nigeria between‚1986-2011. In the process‚ a number of traditional hypotheses on nominal interest rates‚ nominal exchange rates and broad money supply reflecting
Premium Economics Monetary policy Money supply
THE GLOBAL FINANCIAL CRISIS AND EASING OF MONETARY AND FISCAL POLICIES IN KENYA: HAS THE ECONOMY ACHIEVED INTERNAL AND EXTERNAL BALANCE? CEC 702: Macroeconomics I Assignment One Submitted by: Peter Kitonyo Registration No.: X80/81901/09 To: Dr. Rose Ngugi 29th January 2010 THE GLOBAL FINANCIAL CRISIS AND EASING OF MONETARY AND FISCAL POLICIES IN KENYA: HAS THE ECONOMY ACHIEVED THE INTERNAL AND EXTERNAL BALANCE? Introduction The global financial crisis continues to cause a
Premium Monetary policy Macroeconomics Balance of payments
CHAPTER 2 SUMMARIZED NOTES A) THE EVOLUTION OF INTERNATIONAL MONETARY SYSTEM 1) THE CLASSICAL GOLD STANDARD ERA (1870-1914) Characteristics: All currencies are valued in terms of their gold equivalent and thus all currencies are linked together. Eg: 1 ounce of gold = $20.67 1 ounce of gold = £4.25 so 1£ = (20.67 /4.25) = $4.87 Money has a value fixed in terms of commodity gold. Since gold is costly to produce‚ governments could not easily increase their
Premium Bretton Woods system Monetary policy Foreign exchange market
banks have to keep with the RBI. * It is a central bank regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves with the RBI. * Cash Reserve Ratio is also used as a tool in monetary policy by changing the amount of funds available for banks to make loans with. * Effects on money supply: If the reserve requirement set by the RBI is high‚ the amount of funds with the commercial banks to loan out would be low thereby leading to
Free Federal Reserve System Monetary policy Central bank
This document of ECO 316 Week 4 Chapter 22 The International Financial System and Monetary Policy contains: 22.1 Multiple Choice Questions 1) In the early 2000s‚ the Argentine government’s fiscal policy guaranteed which of the following may take place? 2) In the early 2000s‚ what problem did the Argentine central bank face? 3) Foreign central banks 4) International financial transactions are most likely to affect the U.S. money supply when 5) Deliberate actions by a central
Premium Central bank Monetary policy Money supply
CONTRACTIONARY POLICY: Definition: A type of policy that is used as a macroeconomic tool by the country’s central bank or finance ministry to slow down an economy. Contractionary policies are enacted by a government to reduce the money supply and ultimately the spending in a country. This is done primarily through: 1. Increasing interest rates 2. Increasing reserve requirements 3. Reducing the money supply‚ directly or indirectly This tool is used during high-growth periods of the business
Premium Monetary policy Money supply Central bank
Chuku A. Chuku MEASURING THE EFFECTS OF MONETARY POLICY INNOVATIONS IN NIGERIA: A STRUCTURAL VECTOR AUTOREGRESSIVE (SVAR) APPROACH Chuku A. Chuku1 University of Uyo‚ Nigeria. chukuachuku@gmail.com ABSTARCT Correctly identifying the effects of monetary policy innovations is necessary for good policy making. In this paper‚ we carry out a controlled experiment using a structural vector autoregression (SVAR) model to trace the effects of monetary policy shocks on output and prices in Nigeria. We
Free Monetary policy Inflation Economics
Policies for Reducing Unemployment There are two main strategies for reducing unemployment - • Demand side policies to reduce demand-deficient unemployment (unemployment caused by recession) • Supply side policies to reduce structural unemployment / (the natural rate of unemployment) Demand Side Policies [pic] Demand side policies are important when there is a recession and rise in cyclical unemployment. (e.g. after 1991 recession and after 2008 recession) 1. Fiscal
Premium Unemployment Monetary policy Inflation