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Chakravarty Committee on Monetary Policy (1985)
The S. Chakravarty Committee was formed in 1985 under the chairmanship of Prof. Sukhamoy Chakroborty to assess the functioning of the Indian Monetary system.〔(【引用サイトリンク】url=http://www.rbi.org.in/scripts/chro_1985.aspx )〕 Its goal was to improve monetary regulation, a feat that was hoped would enable price stability. The committee, which submitted its report in April 1985, believed that price stability was essential for promoting growth and achieving other social objectives.〔
== Background ==
During the 1970s and early 1980s, the Indian economy had numerous issues relating to the functioning of the monetary system. The government borrowing program was increasing rapidly. These increasing requirements from the government could be met by a) Increasing credit from the Reserve Bank of India to the government and b) Increasing the Statutory Liquidity Ratio that was meant to be maintained by the banks. As a result, the reserves of the government were increasing and this led to an increase in the Money Supply which in turn, resulted in inflationary pressures in the economy. The Reserve Requirement was increased from time to time to counter the effect of this increase in money supply due to the Reserve Bank of India's decision to finance the deficit of the government. These were the most prominent reasons for the appointment of the Chakravarty Committee for reviewing the monetary system. As Chakravarty himself stated, his analysis of the monetary system was to be done "from the point of view of ensuring non inflationary planned development in the years to come."〔
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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