To combat inflation what is the usual monetary policy stance adopted ........

General Studies (CHSL) Indian Economy

To combat inflation, what is the usual monetary policy stance adopted?

This questions was previously asked in

SSC CHSL 3rd June 2022 Shift-2

Hawkish

Hicksian

Dovish

Owlish

- Hawkish (Option:1)

- In a hawkish stance, the focus is on tightening monetary policy.

- This typically involves raising interest rates.

- The goal is to curb inflation by making borrowing more expensive.

- Higher rates can reduce spending and slow down the economy.

- Hicksian (Option:2)

- Refers to economic concepts introduced by John Hicks.

- Not directly related to a monetary policy stance for combating inflation.

- Dovish (Option:3)

- Dovish policies are more accommodative.

- They involve lowering interest rates to stimulate growth.

- Not suited for combating inflation as they encourage spending.

- Owlish (Option:4)

- Not a recognized term in monetary policy.

- Likely meant to be neutral or prudent but not commonly used.

Correct Answer: Hawkish

Submit Error