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“ In Inflation everything gets more valuable except money”
 
Inflation Is An Account Of  Flawed Monetary Policies
[object Object],[object Object],Definition
 
[object Object],[object Object],[object Object],[object Object],[object Object],Tools to measure inflation
Wholesale Price Index (WPI) ,[object Object],[object Object],[object Object]
[object Object],[object Object]
Consumer Price Index (CPI) ,[object Object],[object Object],[object Object],[object Object]
Why is WPI preferred over CPI? ,[object Object],[object Object]
Monetary Policy ,[object Object],[object Object],[object Object]
“ RBI ka usool” ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
“ Dada's & their dadagiri………….” ,[object Object],[object Object],[object Object],[object Object]
What are the objectives of Indian  monetary policy ? ,[object Object],[object Object],[object Object],[object Object]
What are the tools of Indian monetary policy ? OMO CRR REPO SLR BANK RATE
Evolution Of Monetary  Policy In INDIA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cont….. ,[object Object],[object Object],Administered interventions in  1970s and 1980s Monetary target feedback in early 1990s
Monetary changes ,[object Object],[object Object],[object Object],[object Object],[object Object]
CONT…… ,[object Object],[object Object],All sectors  Specific interest rate Prescription  Were  abolished The minimum  Rate prescription Withdrawn bank free To charge PLR The ceiling on  Rates on deposits were  removed Banks were  advised to announce a  benchmark PLR
Impact on Economy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Impact on financial Services ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Third quarter review of Monetary policy 2006 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],GDP 8.5-9% REPO RATE 7.5% RESERVE REPO RATE 6% CRR 5.5% INFLATION 5 - 5.5% MONEY SUPPLY GROWTH 20%
Monetary Policy for 07-08 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],GDP 8.5% Inflation 4.5-5% Bank Rate 6% Reverse REPO rate 6% REPO rate 7.75% C.R.R 6.5 M3 expansion 17-17.5%
“ The whole thing is that ke bhaiya sabse bada rupaiya Int rate ceiling on FCNR deposit reduced 50 bps to LIBOR – 75 bps Ceiling on overseas investment for mutual funds increased from $3 to $4 billion Int rate ceiling on NRE deposit reduced 50 bps to LIBOR/SWAP Prepayment of ECB’s up from $300 million to $400 million Overseas investment limit for Indian JV’s enhanced from 200 to 300% of net worth Remittance limit up from $50000 to $100000 per year for individuals Limit for Portfolio Investment Abroad enhanced from 25% to 35% of net worth Increase limits from $1M to $10M for consultancy for infrastructure projects
Indian Interest Rates
Cash Reserve Ratio (CRR) ,[object Object],[object Object],[object Object]
Repo Rate / Bank Rate ,[object Object],[object Object],[object Object],[object Object]
Open Market Operations ,[object Object],[object Object],[object Object]
Statutory Liquidity Ratio ,[object Object],[object Object],[object Object]
Conclusion ,[object Object]
[object Object]
[object Object]
[object Object]

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inflation (national economic planning)

  • 1. “ In Inflation everything gets more valuable except money”
  • 2.  
  • 3. Inflation Is An Account Of Flawed Monetary Policies
  • 4.
  • 5.  
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15. What are the tools of Indian monetary policy ? OMO CRR REPO SLR BANK RATE
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. “ The whole thing is that ke bhaiya sabse bada rupaiya Int rate ceiling on FCNR deposit reduced 50 bps to LIBOR – 75 bps Ceiling on overseas investment for mutual funds increased from $3 to $4 billion Int rate ceiling on NRE deposit reduced 50 bps to LIBOR/SWAP Prepayment of ECB’s up from $300 million to $400 million Overseas investment limit for Indian JV’s enhanced from 200 to 300% of net worth Remittance limit up from $50000 to $100000 per year for individuals Limit for Portfolio Investment Abroad enhanced from 25% to 35% of net worth Increase limits from $1M to $10M for consultancy for infrastructure projects
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.