Objectives of Monetary Policy free essay sample

These are the general objectives which every central bank of a nation tries to attain by employing certain tools (Instruments) of a monetary policy. In India, the RBI has always aimed at the controlled expansion of bank credit and money supply, with special attention to the seasonal needs of a credit. Let us now see objectives of monetary policy in detail :- 1. Rapid Economic Growth : It is the most important objective of a monetary policy. The monetary policy can influence economic growth by controlling real interest rate and its resultant impact on the investment. If the RBI opts for a cheap or easy credit policy by reducing interest rates, the investment level in the economy can be encouraged. This increased investment can speed up economic growth. Faster economic growth is possible if the monetary policy succeeds in maintaining income and price stability. 2. Price Stability : All the economics suffer from inflation and deflation. We will write a custom essay sample on Objectives of Monetary Policy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It can also be called as Price Instability. Both inflation are harmful to the economy. Thus, the monetary policy having an objective of price stability tries to keep the value of money stable. It helps in reducing the income and wealth inequalities. When the economy suffers from recession the monetary policy should be an easy money policy but when there is inflationary situation there should be a dear money policy. 3. Exchange Rate Stability : Exchange rate is the price of a home currency expressed in terms of any foreign currency. If this exchange rate is very volatile leading to frequent ups and downs in the exchange rate, the international community might lose confidence in our economy. The monetary policy aims at maintaining the relative stability in the exchange rate. The RBI by altering the foreign exchange reserves tries to influence the demand for foreign exchange and tries to maintain the exchange rate stability. 4. Balance of Payments (BOP) Equilibrium : Many developing countries like India suffers from the Disequilibrium in the BOP. The Reserve Bank of India through its monetary policy tries to maintain equilibrium in the balance of payments. The BOP has two aspects i. e. the BOP Surplus and the BOP Deficit. The former reflects an excess money supply in the domestic economy, while the later stands for stringency of money. If the monetary policy succeeds in maintaining monetary equilibrium, then the BOP equilibrium can be achieved. 5. Full Employment : The concept of full employment was much discussed after Keyness publication of the General Theory in 1936. It refers to absence of involuntary unemployment. In simple words Full Employment stands for a situation in which everybody who wants jobs get jobs. However it does not mean that there is a Zero unemployment. In that senses the full employment is never full. Monetary policy can be used for achieving full employment. If the monetary policy is expansionary then credit supply can be encouraged. It could help in creating more jobs in different sector of the economy. 6. Neutrality of Money : Economist such as Wicksted, Robertson have always considered money as a passive factor. According to them, money should play only a role of medium of exchange and not more than that. Therefore, the monetary policy should regulate the supply of money. The change in money supply creates monetary disequilibrium. Thus monetary policy has to regulate the supply of money and neutralize the effect of money expansion. However this objective of a monetary policy is always criticized on the ground that if money supply is kept constant then it would be difficult to attain price stability. 7. Equal Income Distribution : Many economists used to justify the role of the fiscal policy is maintaining economic equality. However in resent years economists have given the opinion that the monetary policy can help and play a supplementary role in attainting an economic equality. monetary policy can make special provisions for the neglect supply such as agriculture, small-scale industries, village industries, etc. and provide them with cheaper credit for longer term. This can prove fruitful for these sectors to come up. Thus in recent period, monetary policy can help in reducing economic inequalities among different sections of society.

Essay on Slaves, Convicts, and Free Settlers Essays

Essay on Slaves, Convicts, and Free Settlers Essays Essay on Slaves, Convicts, and Free Settlers Paper Essay on Slaves, Convicts, and Free Settlers Paper Slaves, Convicts and Free Settlers I agree that slaves, convicts, and free settlers differed greatly, although there are still some similarities about their lives. The comparison of freedom was very different with slaves, convicts and free settlers, while travel by boat was not very different, except for wealthy free settlers who paid for high-class travel. Experiences after the travel on boat also differed. Life for a slave was extremely terrible. African slaves were unwillingly captured, and transported by ship to America, from Africa, to work. Africans that were captured were separated from their families and friends, but the Europeans and Americans did not care. Africans were unable to fight back as the capturers were armed. While the Africans were transported towards America by ship, travelling conditions for them were very unpleasant. Slaves were tightly packed with each other and had no privacy. They had no control over the food that they ate. They were normally given beans, rice and corn. They had very limited supplies of water, and diseases were common. This experience was extremely unhygienic. Slaves hated it so much that they attempted to kill themselves. Some of them refused food, and some gathered to rebel against the crew, trying to get past the guards and jump into the ocean, drowning themselves. Approximately a quarter of slaves died during each journey. After reaching Am erica, slaves were auctioned. Crowds of people would appear for auctions. The Africans were examined, and then sold to the highest bidder. They were forced to work, and those who did not work hard enough were physically punished. Thousands of slaves were worked, starved, or beaten to death. Africans were obviously treated unfairly. While on ships, the experience of a slave was similar to those of a convict, but the working periods on land highly differed. Compared to a free settler, slaves had a very unpleasant life. Convicts were people who committed crimes and were punished. Many poor people had to steal as a living, since lots of them had lost their jobs. People were heavily punished if they were found guilty for very little crimes. Things like pickpocketing and petty theft would get you hanged to death, or locked up for many years. Crowds of people surrounding public hanging areas was normal, even parents brought their young kids there. Since there were so many poor people, places where people were hanged quickly became overloaded. Prisons also became overloaded. The government then came up to the idea of turning old naval ships into cramped, stinking, rat infested prisons on water. They were called ‘Hulks’. However, this only stalled the situation; the ships also eventually became overloaded. The government then sent convicts to Britain’s American colonies, but they also became overwhelmed with convicts. They then planned to send convicts to New South Wales. Conditions on ships for a convict was similar to a slave’s. They were cramped, unhealthy, and ate peas, bread, salted beef or pork, oatmeal, butter and cheese. Illnesses were easily passed on. Stormy weather was especially harsh for convicts because they constantly leaned into others and were only able to stabilize themselves with the bars above them. On the first fleet of convicts, about 30 people died, meaning that slaves had a worse environment. After arriving on land, they were forced to work very hard. The hot and dry land made it especially hard for the convicts. Convicts who did not work hard enough were sent to punishment areas where they had to work out of their exhaustion. Further punishments were done with beatings and floggings, which were achieved with things like whips, lashes and cat o’ nine tails. Convicts that had served their sentence became free settlers or travelled back home. While travelling by ship, convicts had a better experience compared to slaves. Slaves needed to work for their entire lives while convicts only needed to work until their sentence was completed. Free settlers were not forced to work at all. Free settlers were people who travelled to another country to start a new life. A majority of them were wealthy, and they usually travelled to Australia to look for a job and start a new life. While travelling across seas, free settlers who paid for the minimum fee had an experience that was close to a convict’s, but the environment was cleaner and they had hammocks to sleep on. Rich people who paid for a high-class experience had their own private cabins with soft beds and pillows, well-prepared food, and servants. After reaching shore, the rich people often bought large amounts of land and convicts to work for them. Free settlers often became farmers, but some became doctors. Living conditions for free settlers was still harsh, even for the rich. They needed to wait for the right time to harvest the crops. Some supply ships came to New South Wales to deliver food. During droughts and floods, farmers had a difficult time because they needed to protect their crops. As years pa ssed, food supply increased and life became easier. The life of a free settler was definitely better than a slave’s or a convict’s since they had freedom and weren’t unwillingly forced to work. To conclude, convicts, slaves and free settlers differed, but there were a few concepts of their lives that were similar. They all travelled to a different country by boat, and travel was very unpleasant for them all, besides rich free settlers. Convicts and slaves were forced to work very hard, and were beaten if they did not.

Evolution of Modern Corporate Marketing Departments Essay

Evolution of Modern Corporate Marketing Departments - Essay Example In other words, we can say that last year at least, these top companies did a good job of marketing. â€Å"Marketing is so basic that it is not just enough to have a strong sales department and entrust marketing to it. Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of its final result, that is, from the customer’s point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise† (p. 36). Drucker predated Levitt (1960) in defining how the marketing function involves understanding and anticipating future customer needs while satisfying today’s customers who determine what a business is, what they consider â€Å"value† for which they are willing to pay the right price, and what the business should produce. In the over half a century since, marketing has evolved to be a highly, if not the most, important component of running a business successfully. Every profitable and sustainable business, from small enterprises to charities, has a marketing component tasked with finding out what sells (Gummesson, 2002). The American Marketing Association (AMA, 2004) defines marketing as â€Å"an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.† That most of the companies in the Fortune 500 list (though some like GM decreased their revenues and suffered a $10 billion loss) were able to sell products and services profitably showed that the organizational function of marketing delivered on its promise, helped the business fulfill its purpose, and satisfied its stakeholders. Higher record sales and