The Complete Guide to RBI’s Monetary Policy Instruments
Reserve Bank of India (RBI) and other central banks employ a range of monetary policy instruments to manage liquidity, control inflation, and promote economic growth. In this guide we will explain these tools and their operations.
What is Tapering and Quantitative Easing?
US Fed Reserve has recently indicated the need for ‘Tapering’ owing to inflationary pressure. Not long ago we were hearing ‘Quantitative Easing’.
We demystify both these terms in simple words.
Helicopter Money as a Monetary Policy tool : Benefit and Risks
Helicopter Money is a monetary policy concept proposed by economist Milton Freidman to overcome the liquidity and rate transmission challenges. However like everything else in policy making, there are no free lunches. Himanshu Mehra explains the concept and its risks.
Banks being viewed as a panacea for all ills?
While prompt Regulatory actions have tried to address liquidity and other issues of borrowers, there is heavy reliance on Banks to deliver. However, the borrowers and banks together are awaiting reforms. In the COVID Diaries Part 3, Sumit Kakkar evaluates if banks can do heavy lifting