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Q. Role of Monetary Policy?
Monetary Policy: Monetary policy reflects the use by government and government agencies (mainly the central bank) of interest rate adjustments and other levers (like various banking regulations) to influence the flow of new credit into economy, and thus rate of economic growth and job-creation. A ‘tight' monetary policy tries to reduce growth of new credit (through higher interest rates); a ‘loose' monetary policy tries to stimulate more credit creation and hence growth.
Measures to control inflation: Fiscal policy is one of the two main macroeconomic policies used to control aggregate demand and thereby achieve economic stability. Fiscal meas
Fiat money is not a new idea. Some European historians recognize the first use of fiat money in Europe resulting from gold and silver smiths issuing their customers receipts for g
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