The economic reforms were initiated in 1991. Economic reforms denote the process in which a government prescribes declining role for the state and expanding role for the private sector in an economy. It is safer to see economic reform as a policy shift in an economy from one to another or ‘alternative development strategies’. Economic […]

How do you calculate Wholesale Price Index?

The monthly WPI number shows the average price changes of goods usually expressed in ratios or percentages. The index is based on the wholesale prices of a few relevant commodities available. The commodities are chosen based on their signifi cance in the region. These represent different strata of the economy and are expected to provide […]

Financial Stability and Development Council

Background: Since April 2009, India was a member of the international agency looking into the issue, namely, Financial Stability Board. High Level Coordination Committee on Financial Markets (HLCCFM), was the agency facilitating regulatory coordination, informally HLCCFM was the forum to deal with inter-regulatory issues arising in the financial and capital markets, as India follows a […]

Methods for Regulation of Monetary Policy

The methodology can be classified into two categories: Quantitative Credit Control Methods: These are the instruments of monetary policy that affect over all supply of money/credit in the economy. Some are as follows: Statutory Liquidity Ratio: The Statutory Liquidity Ratio refers to that proportion of total deposits which the commercial banks are required to keep […]