In this article we will discuss about the role of NBFIs in influencing monetary policy. The Radcliffe Committee in Britain studied the growth of financial intermediaries since World War II and came to the conclusion that they adversely affected the power of Bank of England to control credit. Gurley and Shaw also came to the […]
Role of NBFIs in Influencing Monetary Policy
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Controversy over Rules and Discretion of Monetary Policy
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In this article we will discuss about the controversy over the issue whether the central bank should conduct policy in accordance with a set of fixed rules or it should follow a discretionary monetary policy. Friedman argues that the lag between the initiation of a monetary policy and the time at which the policy is […]
Lags in Monetary Policy: Meaning, Nature and Criticisms
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In this article we will discuss about:- 1. Meaning and Types of Lags in Monetary Policy 2. Nature of the Lag in Monetary Policy 3. Criticisms 4. Policy Implications. Meaning and Types of Lags in Monetary Policy: One of the limitations of monetary policy in countercyclical manner is the existence of time lags. It takes […]