MONETARY POLICY -OMO,TIGHT AND LOOSE MONEY POLICY, MSS, MPFA & MPC | MINDMAPS | ECONOMY | UPSC CSE скачать в хорошем качестве

MONETARY POLICY -OMO,TIGHT AND LOOSE MONEY POLICY, MSS, MPFA & MPC | MINDMAPS | ECONOMY | UPSC CSE

MONETARY POLICY -OMO,TIGHT AND LOOSE MONEY POLICY, MSS, MPFA & MPC | MINDMAPS | ECONOMY | UPSC CSE Hawk or Dove? 🦅🕊️ In this mindmap video for UPSC CSE, we decode the strategy behind the RBI's Monetary Policy. It's not just about rates; it's about the **Stance**. We break down the mechanism of *Open Market Operations (OMO)**, the special **Market Stabilization Scheme (MSS)* used during demonetization, and the statutory power of the **Monetary Policy Committee (MPC)**. 🏦 *Video Mindmap: Monetary Policy Strategy* ► *1. Tight vs. Loose Policy (The Stance)* • *Tight Money (Dear Money/Hawkish):* Raising rates to suck out liquidity. Used to fight **Inflation**. 🦅 • *Loose Money (Cheap Money/Dovish):* Lowering rates to inject liquidity. Used to boost **Growth**. 🕊️ • *Neutral:* Moving rates both ways based on data. ► *2. Open Market Operations (OMO)* • *Mechanism:* RBI buys or sells Government Securities (G-Secs) in the open market. • *Selling G-Secs:* Sucks liquidity (Money goes from Banks ➡ RBI). 📉 • *Buying G-Secs:* Injects liquidity (Money goes from RBI ➡ Banks). 📈 • *Operation Twist:* Simultaneous buying of long-term and selling of short-term securities. ► *3. Market Stabilization Scheme (MSS)* • *Purpose:* To manage excess liquidity (usually from massive foreign inflows or Demonetization). • *Difference from OMO:* MSS bonds are issued specifically to absorb liquidity, not for the Govt to borrow money for spending. The money is kept frozen in a separate account. ► *4. MPFA & MPC (The Legal Framework)* • *MPFA (2015):* Agreement between Govt & RBI to target Inflation (CPI) at **4% (+/- 2%)**. • *MPC (Monetary Policy Committee):* • *Composition:* 6 Members (3 from RBI + 3 Govt Appointed). • *Head:* RBI Governor (Has the *Casting Vote* in case of a tie). • *Quorum:* 4 Members. • *Section 45ZB:* Of the RBI Act, 1934. This video is essential for understanding the "Why" behind RBI decisions. 🔔 *Subscribe* for the next video on The Structure of Banking (PSB, Private, RRB)! #MonetaryPolicyCommittee #OpenMarketOperations #HawkishVsDovish #InflationTargeting #MarketStabilizationScheme #RBIAct1934 #UrjitPatel #OperationTwist #UPSC #EconomyConcepts