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The Conduct of Monetary Policy
The Performance of Monetary Policy In 1993
The goals of monetary policy in fiscal 1993 were to reduce the inflation rate, minimize pressures on the external sector, stimulate growth in production and output, and reduce pressure on the balance of payments to ensure stable exchange and interest rates.
By the end of the year, there was a rapid expansion of monetary and credit aggregates as broad money rose by 52.8 percent instead of the target of 20 per cent and narrow money by more than 50 per cent instead of the 18 percent target. The trend was the same for other key aggregates. The rate of growth of real output as measured by GDP at 1984 constant factor cost declined, inflation rose and unemployment increased.