Santosh Acharya's Blog

Meso-Economics It   studies the institutional aspect of economy that are not captured by micro or macroeconomics. By pre-supposing the perfect competition, complete information and zero transportation cost, neo-classical economics assumes away the need for institutions like court, parties and religions to deal with the economic problem the people, firms and countries faces. The economists like Kurt Dopfer, John Foster, and Jason Potts have developed a Micro-Meso-Macro theory of evolutionary economics in which "an economic system is population of rules, a structural rules, and a process of rules". The most important feature of Meso-economics framework is to study the actual web of contracts, formal or informal, in family, corporate, market, civil and social institutions. Doing so it provides the natural linkages between micro and macro because the micro level rules and institution typically imply macro level consequences. Meta Economics It goes still furt...

This blog basically deals with the fundamental concept of monetary policy. This is assumed to be beneficial to beginners. Meaning of Monetary Policy It is a set of instruments adopted by the central monetary authority incorporating with the fiscal policy to control the price level. The monetary policy is defined as a discretionary action undertaken by the authorities designed to influence the supply of money and interest rate. Here the policy instruments are; Bank Rate, CRR, SLR, Repo and Reverse Repo, used to control the flow of money supply. Types of Monetary Policy Generally, monetary policy has been classified into two catagories: A. Based on the Objectives:  There are two sets of objectives viz.  A.1 Single-Minded Monetary Policy:  only aims to set a target either on inflation or nominal GNP growth etc . A.2 Multi-Objective Monetary Policy:  is responsible to accomplish multiple tasks viz. Monetary ( money supply, inflation and so on ) and De...