Monetary policy is made by the central bank to manage money supply to achieve specific goals- such as constraining inflation, maintaining an appropriate exchange rate , generating jobs etc.
There are basically two types of monetary policies. They are expansionary and contractionary.
Expansionary: This means increase in the total supply of money in the economy . while contractionary policy means decrease in the total money supply.
Following are the objectives of Monetary policies:
- To give push to the economy.
- To achieve price stability
- Employment generation
- Exchange rate stabilisation
- Balancing saving and investment
Final Destination for Haryana PSC Notes and Tests, Exclusive coverage of HPSC Prelims and Mains Syllabus, Dedicated Staff and guidence for HPSC Exams HPSC Notes brings Prelims and Mains programs for HPSC Prelims and HPSC Mains Exam preparation. Various Programs initiated by HPSC Notes are as follows:-
- HPSC Mains Tests and Notes Program
- HPSC Prelims Exam 2024- Test Series and Notes Program
- HPSC Prelims and Mains Tests Series and Notes Program
- HPSC Detailed Complete Prelims Notes