Interest Rate, Monetary Policy and Inflation in Pakistan | IMF Reforms

TOPIC : Interest Rate, Monetary Policy and Inflation in Pakistan | IMF Reforms In this video we will try to explain and understand what is Interest Rate and Monetary Policy,, because of the fact that Interest Rate and Monetary Policy are also one of the key reform agenda for IMF programs. IMF and State Bank of Pakistan is trying to use Interest Rate and Monetary Policy as a tool to fight inflation in Pakistan. In this video we have tried to share insight on the below mentioned aspects of Interest Rate and Monetary Policy in Pakistan under IMF Reforms agenda. It is important to understand Relationship between interest rates and inflation. interest rate and monetary policy monetary policy rate monetary policy interest rate zero interest rate policy expansionary monetary policy interest rates contractionary monetary policy interest rates interest on reserves monetary policy expansionary fiscal policy and interest rates what are the tools of monetary policy what is monetary policy in economics what is monetary policy what is expansionary fiscal policy what is expansionary monetary policy what is contractionary monetary policy what is Inflation #MonetaryPolicy #InterestRate #Inflation #WashingtonConsensus #InternationalMonetaryFund #Whatis #Pakistan #IMF A first step to understand the economic effects of Washington Consensus policy adoption is to examine the proposed reforms and the drivers of policy adoption across African countries. Washington Consensus reforms, included the following 10 policy recommendations: 1. “Fiscal discipline” focused on ensuring countries had relatively low primary fiscal deficits to avoid balance of payment crises and high inflation 2. “Reordering public expenditure” priorities encouraged elimination of subsidies and increased expenditure on pro-poor programs, including health care, education and infrastructure 3. “Tax reforms” emphasized the need for a broad-based tax base with moderate marginal tax rates; 4. “Interest rate liberalization” aimed at promoting market-determined interest rates and achieving positive real interest rates; 5. “Competitive exchange rates” to correct overvalued exchange rates; 6. “Trade liberalization” to allow more openness to trade with varying views on the pace at which to proceed; 7. “Liberalization of Inward Foreign Direct Investment” to attract foreign capital but not including capital account liberalization; 8. “Privatization” highlighted the potential benefits of privatizing state-owned enter-prises by either selling assets into a competitive market or regulating them properly; 9. “Deregulation” aimed at easing barriers to entry and exit, but not abolishing regulations designed for safety or environmental reasons or to govern prices in a non-competitive industry; 10. “Legal security for property rights” to facilitate the acquisition of property rights, notably in the informal sector At Perspective with Faisal, I try to explain and discuss issues related to economy, political economy, history, education, religion, and political and social issues. Please comment, like, and share our videos and subscribe to my channel to stay connected. Best regards #PerspectivewithFaisal

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