Professional Documents
Culture Documents
Monetary Policy
Monetary Policy
&
Function Of Tight Monetary
Policy In Pakistan
By JOFs
MEMBERS ARE:
Jawad Ahmed (Researcher, Presenter)
Osama Siddiqui (Research coordinator, Presenter)
Syed Faisal Ali (Proof reader, Presenter)
Bilal Mughal (Asst. Researcher)
Altaf Ahmed (Asst. Presenter)
Monetary Policy
Definition:
Monetary policy is concerned with deciding how much money
the economy should have or perhaps more correctly deciding
whether to increases or decrease the purchasing power of money.
According to Macconal:
Changing the money supply to assist the economy to
achieve a full employment
HISTORY
Qualitative Tools
Credit rationing
Credit ceiling
Moral persuasion
Direct action
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Conclusion
SBP has encountered difficulties to targeting the
inflation, economic growth, employment and interest rate
objectives. but still there are certain difficulties which are
a huge hindrance in the way of Economic Policy. so SBP
can control all hurdles with some suitable policies..
(a) improve its capacity to forecast liquidity conditions and
actively preempt inflationary pressures
(b) develop a greater understanding of the channels of
transmission of monetary policy
(c) have an increasingly transparent policy framework