- To Bring equilibrium in balance of payment.
- Stability in prices and in foreign exchange.
- High level of output (National Income)
- High rate of economic growth and employment.
- Low inequity in the distribution of income and wealth.
- To provide positive and negative incentives to promote both real savings and monetary savings.
- Development of infrastructure.
Monetary policy operates effective changes in the stock of money and changes in stock effect the level of demand.
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