Analysis of Monetary Policy and its Impact on Indian Economy
Manpreet Kaur1, Sunanda2
1Dr. Manpreet Kaur*, Mittal School of Business, Lovely Professional University, Phagwara, India.
2Sunanda, Lovely Professional University Phagwara, Punjab, India.
Manuscript received on October 06, 2020. | Revised Manuscript received on October 25, 2020. | Manuscript published on November 30, 2020. | PP: 355-360 | Volume-9 Issue-4, November 2020. | Retrieval Number: 100.1/ijrte.D5006119420 | DOI: 10.35940/ijrte.D5006.119420
Open Access | Ethics and Policies | Cite | Mendeley
© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Monetary policy matters for growth both in the short-run and long-run. This study focuses on theevaluation of monetarypolicyandits impact on Indian economy. Via monitoring the level of money supply, the central bank strives to protect price stability. The study is done using various indicators and factors such as Gross domestic product as dependent variable and repo rate, reverse repo rate, unemployment, Foreign direct investment and inflation as independent variable. Using these variables, it was found out that the economy of a nation is totally dependent on these factors. The parameter of calculating GDP was different. The objective of the research is to know effectiveness of monetary policy in India and to analyze the impact of selected monetary instruments on Indian Economy.
Keywords: Monetary Policy, Gross Domestic Product, Foreign Direct Investment, Inflation, Indian Economy.