An analysis of the effect of monetary policy changes on macroeconomic factors
One important role of the Reserve Bank of India (RBI) or any central bank is to ensure economic stability in the country. For the purpose, the central bank adopts various measures to ensure that the inflation rates, GDP, interest rates, exchange rates, money supply and other target macroeconomic par...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2017-06-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1286.pdf
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| _version_ | 1818386483718914048 |
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| author | Moid U. AHMAD Shamima NASRIN |
| author_facet | Moid U. AHMAD Shamima NASRIN |
| author_sort | Moid U. AHMAD |
| collection | DOAJ |
| description | One important role of the Reserve Bank of India (RBI) or any central bank is to ensure
economic stability in the country. For the purpose, the central bank adopts various measures to
ensure that the inflation rates, GDP, interest rates, exchange rates, money supply and other target
macroeconomic parameters remain under control. It uses reserve ratios like Cash Reserve Ratio
and interest rates like Repo rates to control liquidity and inflation in the country. The effectiveness
of such policies and monetary rates in ensuring economic stability needs to be verified and tested.
The decision maker needs to understand the effect of these changes on the affected (targeted)
variable. This research is an attempt to test and verify the effectiveness of the changes in monetary
and policy rates on the desired critical variables. What is the effect and how much is the effect? Can
these effects help in better policy making? These are some of the questions aimed to be addressed
in the research.
The research uses basic statistical tools such as correlation, regression and advance statistical tools
such co-integration and Vector Auto Regression to study the variables and draws conclusion based
on the results. The data used is from Indian economy and the time period used is 2011-2014. Monthly
and quarterly data has been used as required. The research is aimed to provide information to
decision makers in formulating policies and to contribute to the existing literature on the subject. |
| first_indexed | 2024-12-14T03:54:46Z |
| format | Article |
| id | doaj.art-2d807eb1736e41968a84f2a6c498d66f |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-14T03:54:46Z |
| publishDate | 2017-06-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-2d807eb1736e41968a84f2a6c498d66f2022-12-21T23:18:06ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292017-06-01XXIV230331818418678An analysis of the effect of monetary policy changes on macroeconomic factorsMoid U. AHMAD0Shamima NASRIN1 Jaipuria Institute of Management, Noida, India Bangladesh Bank, Dhaka, Bangladesh One important role of the Reserve Bank of India (RBI) or any central bank is to ensure economic stability in the country. For the purpose, the central bank adopts various measures to ensure that the inflation rates, GDP, interest rates, exchange rates, money supply and other target macroeconomic parameters remain under control. It uses reserve ratios like Cash Reserve Ratio and interest rates like Repo rates to control liquidity and inflation in the country. The effectiveness of such policies and monetary rates in ensuring economic stability needs to be verified and tested. The decision maker needs to understand the effect of these changes on the affected (targeted) variable. This research is an attempt to test and verify the effectiveness of the changes in monetary and policy rates on the desired critical variables. What is the effect and how much is the effect? Can these effects help in better policy making? These are some of the questions aimed to be addressed in the research. The research uses basic statistical tools such as correlation, regression and advance statistical tools such co-integration and Vector Auto Regression to study the variables and draws conclusion based on the results. The data used is from Indian economy and the time period used is 2011-2014. Monthly and quarterly data has been used as required. The research is aimed to provide information to decision makers in formulating policies and to contribute to the existing literature on the subject. http://store.ectap.ro/articole/1286.pdf macroeconomymonetary policypolicy ratescentral bank |
| spellingShingle | Moid U. AHMAD Shamima NASRIN An analysis of the effect of monetary policy changes on macroeconomic factors Theoretical and Applied Economics macroeconomy monetary policy policy rates central bank |
| title | An analysis of the effect of monetary policy changes on macroeconomic factors |
| title_full | An analysis of the effect of monetary policy changes on macroeconomic factors |
| title_fullStr | An analysis of the effect of monetary policy changes on macroeconomic factors |
| title_full_unstemmed | An analysis of the effect of monetary policy changes on macroeconomic factors |
| title_short | An analysis of the effect of monetary policy changes on macroeconomic factors |
| title_sort | analysis of the effect of monetary policy changes on macroeconomic factors |
| topic | macroeconomy monetary policy policy rates central bank |
| url |
http://store.ectap.ro/articole/1286.pdf
|
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