inflation targeting: View: Why revamping the MPC framework should be at the top of the pile for policymakers

December 21, 2020 0 By boss


The writing has been on the wall for some time. India’s monetary policy framework is dead. Not legally, but practically, as extreme circumstances have forced relooks at key assumptions and objectives behind the vaunted inflation targeting framework. Even before Covid-19, the inflation targeting framework seemed to be biased towards keeping rates high. While nominal growth rates have been slowing for several quarters, monetary policy discussions





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