Impact of Monetary Policy on Indian Economy in the Post-Reform Period

The present study was an attempt to analyze systematically the techniques of monetary control measures with its relevance and changing importance and to find out their effectiveness in the Indian context especially to achieve the thriving objectives of price stability and economic growth.There is definite and remarkable economic impact of monetary policy on Indian economy in the post-reform period. The importance of monetary policy has been increasing year after year. Its role is very relevant in attaining monetary objectives, especially in managing price stability and achieving economic growth. Along that, the use and importance of monetary weapons like Bank rate, CRR, SLR, Repo rate and Reverse Rate have increased over the years. Repo and Reverse Repo rates are the most frequently used monetary techniques in recent years. The rates are varied mainly for curtailing inflation and absorb the excess liquidity and hence to maintain price stability in the economy. Thus, this short-time objective of price stability is more successful on Indian economy rather than other long-term objectives of development.Monetary policy rules can be active or passive. The passive rule is to keep the money supply constant, which is reminiscent of Milton Friedman’s money growth rule. The second, called a price stabilization rule, is to change the money supply in response to changes in aggregate supply or demand to keep the price level constant. The idea of an active rule is to keep the price level and hence inflation in check. In India, this rule dominates our monetary policy. A stable growth is healthy growth.

Judicial Creativity in Constitutional Interpretation

The focus of study in this thesis is on the necessity and extent of judicial creativity in interpreting provisions in certain crucial areas in the Constitution of India. Judicial innovation was essential to adapt the constitutional provisions to modern changed context. Creativity of the Court has been mainly in the creation and introduction of certain new concepts not found in any specific provision of the Constitution which, but were essential for its meaningful interpretation.Independence of the judiciary, basic structure and certain elements of social justice cherished as ideal by the makers of the Constitution are some such concepts infused into the Constitution by the judiciary. The second aspect of creativity lies in the attempt of the Court to construe provisions in the Constitution with a view to upholding and maintaining the concepts so infused into the Constitution. Introduction of those concepts into the Constitution was necessary and is justified. all important features of the Constitution like democratic form of government, federal structure, judicial review, independence of judiciary and rule of law were thus included in the doctrine to prevent their alteration by amendments.As a result of such a construction, the nature of those directive principles itself has changed. They ceased to be mere directives for state action but became mandate for it. If left to legislative or executive will for their implementation, the directives would have remained enforceable as ordinary right.To conclude, notwithstanding the errors committed by the Supreme Court in construing the provisions in the above areas, they stand testimony to its creative and innovative response in interpreting the Constitution. If this trend is continued, it will be possible to achieve through the judicial process, maintenance of independence of the judiciary, avoidance of destruction of the Constitution through the process of amendment and realisation of social justice envisaged in the directive principles. It can be hoped that the Court would maintain its energetic and vibrant mind and rise up to the occasions and extend the same to other areas in future.