Market power and monetary policy

25 JUL,2021 | MEDC


 

Excess market power in the hands of any single entity is undesirable. Not only does it hamper overall business dynamism and growth, it also dampens RBI’s ability in using monetary policy effectively to influence economic activity. Larger profits make big firms less sensitive to changes in external financing conditions, such as those triggered by RBI’s policy decisions, as they can decide on investment and other operations without worrying much about their funding issues. This strengthens the case for reforms to increase competition. Enhancements to competition law and policy frameworks (including specific measures to cope with the fast changing digital economy) need serious consideration. Today’s policymakers need all available tools to engineer a dynamic and inclusive economic recovery. In this regard, the curbing of excess corporate market power should be examined.

*Photo Credit: Google

Comments



Featured Posts



Recent Posts


EMERGING ISSUES IN AEROSPACE INDUSTRY: AN INDIAN PERSPECTIVE


Tourism and its contribution to the Economy


Interactive Meeting with Mr. Jaykumar Rawal Hon'ble Minister for Tourism & Employment Guarantee Scheme Govt. of Maharashtra


De-coding skills-based pro-bono


FOOD PRICE VOLATILITY


Food Inflation in India: An Assessment




Archive




© Copyright 2019 MEDC, All rights reserved
Website Design and Develop By: SCI Knowledge Interlinks