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Monetary Policy

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Monetary Policy
ECONOMICS

PROJECT REPORT

MONETARY POLICY

* SUBMITTED BY:

Group # 5

* SUBMITTED TO:

Sir. Aqeel Somroo

KAHUTA INSTITUTE OF COMPUTER SCEINCE
&
INFORMATION TECHNOLOGY
(KICSIT)

* Group Leader:

1. Umer Farooq Munir (32) * Group Members:

2. Faisal Ashfaq (24) 3. Sadaf Qazi (15) 4. Mohammad Bilal Khan (44) 5. Zaigham Raza (77) 6. Adeel Ahmed (66)

Quotation

Attain knowledge before old age settles in
-Hazrat Umer Farooq (R.A)

* Monetary Policy:
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values.
Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing. * Contents: 1. Overview 2. Theory 3. History of monetary policy 4. Monetary policy of Pakistan (2012) 5. Trends in central banking 6. Developing countries 7. Types of monetary policy 8. Inflation targeting 9. Price level targeting 10. Monetary aggregates 11. Fixed exchange rate 12. Gold standard 13. Policy of various nations

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