Posts Tagged ‘ Interest Rates ’

Monetary Policy- Just Pain, No gain: Critics By SS Bhalla

Monetary authorities should not practise ideology, especially since monetarist ideology has been made obsolete by globalisation and development Let us examine why Mr Reddy’s policies are most likely to be wildly off the mark. With the CPI inflation rate around 7 per cent, Reddy increased the repo rate to 9 per cent, besides also increasing [ READ MORE ]

Monetary Policy: 2008

MEASURES ANNOUNCED Repo Rate increased by 50 bps from 8.5 per cent to 9 per cent CRR to be hiked by 25 bps to 9 per cent with effect from August 30, 2008 Bank Rate kept unchanged at 6 per cent Reverse Repo Rate under the liquidity adjustment facility (LAF) kept unchanged at 6 per [ READ MORE ]

Currency Valuation: forces on play

What are Currency Appreciations and Depreciations? If nominal exchange rates change so that one Dollar buys more Rupees, then the dollar has appreciated in nominal terms. And the Rupee has correspondingly depreciated in nominal terms because a Rupee can buy fewer U.S. Dollars. If the real exchange rate between the U.S. and India changes, which [ READ MORE ]

Inflation : Impact on Economy

Understanding inflation is crucial to investing because inflation can reduce the value of investment returns. Inflation affects all aspects of the economy, from consumer spending, business investment and employment rates, to government programs, tax policies, and interest rates. What is Inflation? Inflation is a sustained rise in overall price levels. Moderate inflation is associated with [ READ MORE ]

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