What are the objectives of Monetary Policy?

1. To Bring equilibrium in balance of payment.
2. Stability in prices and in foreign exchange.
3. High level of output (National Income)
4. High rate of economic growth and employment.
5. Low inequity in the distribution of income and wealth.
6. To provide positive and negative incentives to promote both real savings and monetary savings.
7. Development of infrastructure.

Monetary policy operates effective changes in the stock of money and changes in stock effect the level of demand.