Effectiveness of Monetory Policy
A Term Paper on
Effectiveness of Monetary Policy in ensuring Price Stability & preserving the value of local currency: in the case of developing countries.
Submitted To: Prof. Mohammed Farashuddin PhD Visiting Professor Department of Banking & Insurance University Of Dhaka
Submitted by: Nazrul Islam ID: 51223060, MBA (Evening Program) Department of Banking & Insurance University Of Dhaka
Table of Context
i) Abstract………………………………………………… ii) Objective of the Study………………………………… iii) Specific objective………………………………………. iv) Introduction……………………………………………
v) Background Analysis………………………………….. vi) Literary Review………………………………………… vii) Classical quantity Theory of Money…………………. viii) Monetarist Policy Theory……………………………… ix) Tools of Monetary Policy……………………………….
x) Monetary Policy Instrument…………………………… xi) Failure of Monetary policy in Developing Countries… xii) Conclusion………………………………………………. xiii) Recommendation………………………………………..
1. Abstract
Monetary Policy is the deliberate control of base money supply, M and in specific instances, credit conditions with a view to realizing macroeconomic policy objectives such as price stability ( in large manner), GDP growth and employment generation. Various studies have reflected the existence of a positive relationship between the increase of money supply and the level of inflation. Generally, this is reflected by the continued rise of prices of the various products. A situation ensues where excess amounts of money tend to be chasing too few goods. In this perspective, this study tested on whether monetary policy is an effective tool in the combating of inflation and ensuring price stability.
The first and foremost objective of the
Effectiveness of Monetary Policy in ensuring Price Stability & preserving the value of local currency: in the case of developing countries.
Submitted To: Prof. Mohammed Farashuddin PhD Visiting Professor Department of Banking & Insurance University Of Dhaka
Submitted by: Nazrul Islam ID: 51223060, MBA (Evening Program) Department of Banking & Insurance University Of Dhaka
Table of Context
i) Abstract………………………………………………… ii) Objective of the Study………………………………… iii) Specific objective………………………………………. iv) Introduction……………………………………………
v) Background Analysis………………………………….. vi) Literary Review………………………………………… vii) Classical quantity Theory of Money…………………. viii) Monetarist Policy Theory……………………………… ix) Tools of Monetary Policy……………………………….
x) Monetary Policy Instrument…………………………… xi) Failure of Monetary policy in Developing Countries… xii) Conclusion………………………………………………. xiii) Recommendation………………………………………..
1. Abstract
Monetary Policy is the deliberate control of base money supply, M and in specific instances, credit conditions with a view to realizing macroeconomic policy objectives such as price stability ( in large manner), GDP growth and employment generation. Various studies have reflected the existence of a positive relationship between the increase of money supply and the level of inflation. Generally, this is reflected by the continued rise of prices of the various products. A situation ensues where excess amounts of money tend to be chasing too few goods. In this perspective, this study tested on whether monetary policy is an effective tool in the combating of inflation and ensuring price stability.
The first and foremost objective of the