Public Administration Mains 2018 : Solved Paper Public Administration : Paper-1-Question-7
Public Administration Mains 2018 : Solved Paper Question Paper-1 (Question-7)
SECTION-B
Q7. (a) How does ethnocentrism impact development administration in achieving sustainable goals ? Argue with examples. (Development Dynamics)
ANSWER: ONLY FOR PAID MEMBERS
(b) “Monetary policy of a country can help or hinder its development process." Discuss. (Financial Administration)
ANSWER: (1) A monetary policy decision cuts interest rate, for example, lowers the cost of borrowing, resulting in higher investment activity and the purchase of consumer durables. Monetary policy plays a stabilizing role in influencing economic growth through a number of channels.
(2) Monetary policy uses its tools to effectively check money supply with a view to maintaining price stability in the medium to long term.
(3) Monetary policy influences expectations about the future direction of economic activity and inflation, thus affecting the prices of goods, asset prices, exchange rates as well as consumption and investment.
(4) The expectation that economic activity will strengthen may also prompt banks to ease lending policy, which in turn enables business and households to boost spending.