Monetary Policy & Poverty Alleviation: Challenges and Suggestions

Monetary policy can play a role in poverty alleviation by stabilizing prices, promoting economic growth, and ensuring financial inclusion. Challenges include addressing inflation, unemployment, and income inequality, necessitating coordinated fiscal and monetary measures.

Challenges

• Inflation Control vs. Growth: Balancing inflation control with growth is crucial. High inflation erodes purchasing power, disproportionately affecting the poor. The RBI's priority on inflation targeting helps in stabilizing the economy, but tight monetary policies can sometimes constrain economic growth and job creation.
• Data Limitations: Accurate poverty assessment is hindered by outdated or incomplete data. The absence of recent comprehensive consumption surveys has led to reliance on ....