Significance of Monetary Policies for Control of Inflation | Original Article

ABSTRACT:

The development of the country depends on their economy, which needs money circulation time to time for striking equilibrium points between excess or scarcity. The monetary policies helpful in adjusting the problem of the economy's situation over a period of time. The problem of inflation arises due to the inflows and outflows of the money in excess quantity, which overall reduces the purchasing power of the money. So, inflation is said to be main the indicator of the development of the country. The objective of the study is to study the framework of Monetary Policies declared by RBI Governor and measures to control the inflation. The researcher has done descriptive research which is focusing on the monetary policies as well as impact on inflation. The purposive sample is used in the study and the data was collected through the secondary sources like from the various official websites. The findings of the study are that the inflation is seen from the monetary policy's angle and controlling aspects of the monetary policies is also seen through the implementation and changing in monetary policies time to time. Both term monetary policies and inflation inter dependent to each other and this paper attempts to analyse the relationship between monetary policies and inflations. At the end, it is concluded that monetary policies play a very significant role in controlling monetary supplies, if it is maintained in a good manner then equilibrium point is achieved at good inflation which should be operated to achieve overall high rate of development for the country.