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ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 3 (50), 2023
УДК 336
Аджмал Хан Йога Лакшми, студент международного медицинского института Курского государственного медицинского университета, Курск, Россия email: [email protected]
Хассан Аркуам, студент международного медицинского института Курского государственного медицинского университета, Курск, Россия email: [email protected]
ДЕНЕЖНО-КРЕДИТНАЯ ПОЛИТИКА ИНДИИ
Аннотация: денежно-кредитная политика - это набор инструментов, используемых странами для контроля своей денежной массы и, в свою очередь, количества денег, доступных для использования в экономике. Это мощный метод, который влияет на стоимость валюты страны, инфляцию и экономический рост. В этой статье мы рассмотрим, что такое денежно-кредитная политика, ее цели, различные типы денежно-кредитной политики, экспансионистскую денежно-кредитную политику, ее последствия и примеры, а также роль Центрального банка в реализации денежно-кредитной политики.
Ключевые слова: денежно-кредитная политика, Индия
Ajmal Khan Yoga Lakshmi, student of the International Medical Institute, Kursk State Medical University, Kursk, Russia email: [email protected]
Hassan Arquam, student of the International Medical Institute, Kursk State Medical University, Kursk, Russia
email: [email protected]
nOHHTHKÄ, ЭКОНОМHКА H HHHOBÄUHH № 3 (50), 2023
INDIA'S MONETARY POLICY
Abstract: monetary policy is a set of tools used by countries to control their money supply and, in turn, the amount of money available for use in the economy. It is a powerful technique that affects a country's currency value, inflation, and economic growth. In this article, we will explore what monetary policy is, its goals, different types of monetary policies, expansionary monetary policy, its effects and examples, and the role of the Central Bank in the implementation of monetary policy.
Key words: monetary policy, India
Monetary policy is a set of policies and tools used by countries to control their money supply, the cost of borrowing money, and the rate of inflation. It is used to influence and regulate the availability and cost of money in an economy. The primary goal of monetary policy is to keep prices stable and promote economic growth.
Monetary policy is managed by the country's central bank. It can be used to control the supply and demand of money in an economy. By controlling the money supply, the central bank can affect the cost of borrowing money, the rate of inflation, and the value of the currency[2].
The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934. Recently there were many changes in the way Monetary Policy of India is formed - with the introduction of Monetary Policy Framework (MPF), Monetary Policy Committee (MPC), and Monetary Policy Process (MPP)[1].
The primary goal of monetary policy is to promote economic growth and stability. Different countries have different goals for their monetary policy, but the most common goals are to:
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 3 (50), 2023
• Promote economic growth and stability by ensuring the availability of adequate money for economic activity.
• Maintain price stability by controlling the rate of inflation.
• Keep the exchange rate of the currency stable.
• Foster employment and reduce unemployment[8].
There are two types of monetary policy: expansionary monetary policy and contractionary monetary policy. Expansionary monetary policy refers to a policy that increases the money supply in an economy, resulting in lower interest rates, increased investment, and increased consumer spending. Contractionary monetary policy, also known as tight money policy, is a policy that reduces the money supply in an economy, resulting in higher interest rates, decreased investment, and decreased consumer spending[5].
What is expansionary monetary policy? Expansionary monetary policy is a policy that increases the money supply in an economy in order to stimulate economic activity. It is typically used when an economy is in a recession or when inflation is low.
Expansionary monetary policy is used by central banks to lower interest rates, making it easier for businesses and consumers to borrow money. Lower interest rates lead to increased investment, as businesses are more likely to borrow money to finance expansion and new projects. Lower interest rates also lead to increased consumer spending, as consumers are more likely to take out loans and make large purchases [7].
The effects of expansionary monetary policy are typically positive for an economy. Lower interest rates lead to increased investment and consumer spending, which can stimulate economic growth. Expansionary monetary policy can also lead to increased employment and higher wages, as businesses expand and hire more workers.
However, expansionary monetary policy can also have negative effects. If the money supply is increased too quickly, it can lead to rapid inflation and an increase in the
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 3 (50), 2023 cost of goods and services. This can be damaging to an economy, as it reduces the purchasing power of consumers and reduces their ability to save [6].
The Federal Reserve's quantitative easing program is an example of an expansionary monetary policy. The program was used to increase the money supply in the U.S. economy during the Great Recession. Through the program, the Federal Reserve purchased large amounts of government bonds and mortgage-backed securities, which increased the money supply and lowered interest rates [9].
The Bank of Japan also implemented an expansionary monetary policy during the 1990s, when the country was in a recession. The Bank of Japan lowered interest rates and increased the money supply, leading to increased investment, increased consumer spending, and economic growth.
Central banks use a variety of tools to implement monetary policy. These tools include:
• Open market operations: Central banks can buy and sell government bonds in the open market to increase or decrease the money supply.
• Reserve requirements: Central banks can increase or decrease the amount of reserves that commercial banks are required to hold. This affects the amount of money that banks can lend to consumers and businesses.
• Discount rate: Central banks can increase or decrease the interest rate that commercial banks must pay when borrowing funds from the central bank. This affects the cost of borrowing for commercial banks, which in turn affects the cost of borrowing for consumers and businesses.
• Margin requirements: Central banks can increase or decrease the amount of money that must be held as collateral when banks issue loans. This affects the amount of money that banks can lend to consumers and businesses [3].
The Federal Reserve is the central bank of the United States and is responsible for implementing monetary policy in the U.S. economy. The Federal Reserve sets the target
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 3 (50), 2023 Federal Funds rate and uses open market operations to buy and sell government bonds to increase and decrease the money supply.
The Federal Reserve also uses other tools, such as reserve requirements, the discount rate, and margin requirements, to influence the money supply. By using these tools, the Federal Reserve can influence the amount of money available for borrowing and affect the cost of borrowing [1].
Monetary policy is a powerful tool used by countries to control their money supply and, in turn, the amount of money available for use in the economy. We have explored what monetary policy is, its goals, different types of monetary policies, expansionary monetary policy, its effects and examples, and the role of the Federal Reserve in the implementation of monetary policy [10].
References
1. What is Monetary Policy? The Economic Times(2022) // https://economictimes.indiatimes.com/definition/Monetary-Policy
2. Monetary Policy // https://en.wikipedia.org/wiki/Monetary_policy
3. Monetary Policy as part of Economy // https://www.cbr.ru/eng/dkp/
4. Board of Governor of Federal Reserve System(2021) // https: //www.federalreserve.gov/monetarypolicy.htm
5. Resource Economics - Corporate Finance Institute // https://corporatefinanceinstitute.com/resources/economics/monetary-policy/
6. International Monetary Fund // https://pubmed.ncbi.nlm.nih.gov/21319721/
7. Monetary Policy Framework in India // https://link. springer.com/article/10.1007/s41775-020-00085-3
8. Monetary Policy - Educba(2020) // https://www.educba.com/monetary-policy/
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 3 (50), 2023
9. Business Economics;Monetary Policy of India(2019) // https://www.toppr.com/guides/business-economics-cs/money-and-banking/monetary-policy-of-india/
10. Monetary Policy operating Procedure in India // https://www.bis.org/publ/plcy05e.pdf
