ABSTRACT
The purpose of this study was to assess the impact of monetary
policy on macroeconomic performance in India. The data used for the analysis
come from many sources and cover the period from 1980 to 2014. The brief argues
that monetary policy significantly affects the economic performance of
India.
The findings of the study reveal that monetary policy affects
the Indian economic growth with a minimum period of one year after its
implementation : a monetary policy for the current year affects economic growth
of next year. It also reveals that this growth unfortunately results in weak
jobs creation and low reduction of poverty and inequality. The study also
identifies the factors that limit the effectiveness of India's monetary policy
in the current period.
Key words : Monetary policy, bank credit, economic growth,
Reserve bank of India
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