International Journal of Financial Management and Economics
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E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
Printed Journal   |   Refereed Journal   |   Peer Reviewed Journal
International Journal of Financial Management and Economics
Vol. 5, Issue 2 (2022)

Economic policymaking: Combinations and outcomes


Dr. SS Savant and Dr. UY Kulkarni

This paper tries to tackles a fascinating issue called ‘Monetary Policy’. Few interesting debates are prevalent on the issue. Monetary policy is one of the main tools that governments can use to influence the economy. Monetary authorities work through the money supply and can use open market operations, their own lending rates and reserve or cash ratios to influence money markets and hence the real economy. Just as with fiscal policy, once the gap in the economy is identified, expansive monetary policy should be used in a recessionary gap and restrictive monetary policy in an inflationary gap. Monetary policy is superior to fiscal policy in many ways, but its greatest weakness is that it does not work nearly as well in recessionary gaps as in inflationary gaps.
Pages : 01-05 | 69 Views | 26 Downloads
How to cite this article:
Dr. SS Savant, Dr. UY Kulkarni. Economic policymaking: Combinations and outcomes. Int J Finance Manage Econ 2022;5(2):01-05. DOI: 10.33545/26179210.2022.v5.i1.135
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International Journal of Financial Management and Economics