Fiscal and Monetary Policy

     Objectives of the monetary policy in developing countries
1. Development of Financial Institutions
2. Interest rate control
3. Debt / Loan Management
4. Credit (sakha) Control
5. Price Control
6. Increase in national income
7. Foreign Exchange rate stability

    Objectives  of Monetary policy
1. Neutrality of Money (mudra ko tathasta+ta)
2. Price stability
3. Exchange stability
4. Full Employment
5.Economic growth

           Significance and Objectives of Fiscal Policy
1. Capital formulation
2. Resource mobilisation
3. Price stability
4. Reduction in economic inequality
5. Promote employment opportunities
6. Economic stability
7. Correct adverse balance of payments
(praticul bhukatani santulan sachauna)

   Monetary policy used to solve the problems of depression
1. Decrease in Bank rate
2. Purchase government securities by central bank
3. Decrease in rate of interest
4. Expansion in credit ( sakha bestar)