{"id":247558,"date":"2023-06-12T20:49:18","date_gmt":"2023-06-12T15:19:18","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=247558"},"modified":"2023-06-13T09:59:42","modified_gmt":"2023-06-13T04:29:42","slug":"monetary-policy-global-and-local","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/monetary-policy-global-and-local\/","title":{"rendered":"Monetary policy: Global and local"},"content":{"rendered":"\n<p><strong>Source: <\/strong>This post has been created based on the article \u201cMonetary policy: Global and local\u201d, published in Business Standard on 12<sup>th<\/sup> June 2023.<\/p>\n<p><strong>Syllabus Topic<\/strong>: GS Paper 3 \u2013 growth and development of Indian Economy<\/p>\n<p><strong>Context:<\/strong> The article discusses the recent developments in the monetary policies of the US Federal Reserve (the Fed) and the Reserve Bank of India (RBI) in the context of global events.<\/p>\n<p>US Fed&#8217;s tightening and Russia&#8217;s invasion of Ukraine has a big impact on the world economy. In 2021, the Fed had to deal with a big inflation problem. It increased interest rates 10 times from March last year to between 5 and 5.25%. At the same time, Russia invaded Ukraine. These two events had a big impact on the world economy, affecting everything from start-ups and cryptocurrencies in India to the global energy market.<\/p>\n<h2><strong>What are its impacts on India?<\/strong><\/h2>\n<p>In India, actions by the Fed and the Reserve Bank of India (RBI) have slowed down the economic growth that followed Covid-19.<\/p>\n<p>Inflation in India has dropped a lot over the year and is now close to the target of 4%.<\/p>\n<h2><strong>What are the future projections for India\u2019s growth?<\/strong><\/h2>\n<p>The RBI has been successful in managing inflation by predicting future inflation and acting accordingly.<\/p>\n<p>If global food prices don&#8217;t rise too much because of the problems with Ukrainian food exports, the RBI might be able to act quickly to keep inflation below 4%.<\/p>\n<p>If the Fed increases interest rates and the RBI doesn&#8217;t, the Indian rupee might lose value. This could help the Indian economy by making imported goods more expensive and Indian exports cheaper.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: This post has been created based on the article \u201cMonetary policy: Global and local\u201d, published in Business Standard on 12th June 2023. Syllabus Topic: GS Paper 3 \u2013 growth and development of Indian Economy Context: The article discusses the recent developments in the monetary policies of the US Federal Reserve (the Fed) and the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/monetary-policy-global-and-local\/\">Continue reading <span class=\"screen-reader-text\">Monetary policy: Global and local<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-247558","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/247558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=247558"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/247558\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=247558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=247558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=247558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}