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Qualitative instruments: Understanding Monetary Policy (for UPSC CSE)

Lesson 9 of 9 • 968 upvotes • 10:00 mins

Ayussh Sanghi

This is the last lesson in the course and it covers the qualitative instruments for controlling the monetary policy. It starts with the major distinction that qualitative measures are important not only in controlling the value of loans but also the purpose for which the loans are assigned. It then discusses the 4 most important instruments - Moral Suasion, Rationing of Credit, Direct Action, Margin Requirements.