Monetary policy consists of the conduct of a central bank or other nonsupervisory commission that determine the size and rate of growth of money force, which in turn affects interest rates. Monetary policy is maintained by modifying the interest rates, buying or dealing government bonds, and changing the quantum of money banks are needed to keep in the vault (Bank reserve). By monetary policy, we mean the policy concerned with changes in the force of money, monetary policy can either be expansionary policy, or a contractionary policy, where an expansionary policy increases the total force of money in the economy, contractionary policy decreases the total money force. Expansionary policy is traditionally used to combat severance. In this sense, monetary policy comprises only those opinions and measures of the state and of the financial authority which affect the volume of money and position of interest rates. Therefore, monetary policy is defined as comprising of similar measures which lead to impacting the cost, volume and vacuity of money & credit so as to achieve certain set objects. Historically, profitable growth and affectation has been the primary ideal of any monetary policy. But the rising focus on fiscal addition has latterly led to the development of fiscal market and fiscal institutional structure not only in India but also at global position. therefore, the question arises is whether the central authority be given the responsibility either in full or participated of maintaining fiscal stability along with price stability or there should be a separate authority to deal with the problem of fiscal stability. Another important issue is whether the central bank’s instruments (interest rate, credit) for addressing the price stability is sufficient to insure multiple ideal of price stability and fiscal stability both. Eventually, is there any inter-linkage between the price stability and fiscal stability? However, also whether it's long run or short run, If there. Present exploration offer is a contribution towards all these unsettled issues. The exploration work will be salutary for the academicians, policy makers and experimenters.

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Keywords: Development, Money, Economy, Credit, Financial, Stability, Growth, Price, Inflation, Policy.