After studying this topic, you should be able to understand
- Monetary policy aims at achieving certain well-defined macroeconomic objectives.
- To achieve the objectives of monetary policy, the central bank has at its disposal the quantitative and the qualitative measures of monetary policy.
- The effective working of monetary policy is hindered due to the existence of different obstacles.
- Fiscal policy refers to the government’s policy regarding government expenditure, taxation and public borrowing with the view to achieving certain well-defined macroeconomic objectives.
- To implement fiscal policy, the government has at its behest several instruments which include taxation, government expenditure and public ...