Monetary policy is the process by which monetary authority of a country , generally central bank controls the supply of money in the economy by its control over interest rates in order to maintain Price stability and achieve high economic growth

The central monetary authority is the reserve bank of india

As we know that the main purpose of Monetary Policy is to maintain price stability and growth. And through MP tools RBI can control inflation(Price stability) from demand side but inflation can't be controlled only through demand side,it should be controlled from supply side also. Fiscal policy has control on supply side which is under the Government. So the main issues is poor coordination between Govt and RBI or Fiscal policy and Monetary policy.

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