Thursday, 30 June 2022

Role of Monetary Policy during Financial Crisis and its Impact in India | Chapter 4 | New Innovations in Economics, Business and Management Vol. 10

The Sub Prime Crisis will be discussed in this essay along with its definition, causes, effects on BRIC economies, effects on the Indian economy, and lessons to be taken away. Monetary policy has a crucial role in how every economy develops. A country will be less impacted by the crisis if its monetary policy is sound and effective. India has a monetary policy structure that is more effective and stable, which has shielded us from the worst consequences of the crisis. The current economic crisis, commonly known as the "subprime crisis" or the "global financial crisis," began at the end of 2007. The "Sub Prime Crisis" that originated in the United States ultimately expanded to the rest of the globe as the "Global Financial Crisis." The Global Catastrophe is a crucial component of contemporary economics since it not only clarifies the need for an economic policy framework but also exemplifies how robust an economy is in the face of adversity. A healthy monetary policy is necessary for any economy in order to weather any financial storm. The study's conclusion is that policy should support growth rather than impede it.


Author(s) Details:

S. Madhusudhanan,
Government of India, New Delhi, India.

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