Look East for Wisdom on Our Monetary Policy Framework: Monetary Policy is Too Serious a Business to be Left to Monetary Authorities and Inflation is too Big a Job to be Left to Monetary Policy
On monetary policy as in many other areas, we tend to ape the latest in the West without considering the differences of circumstances. On the issues of independence of Reserve Bank of India(RBI), its mandate on controlling inflation, its instrument for controlling inflation, we have been we have been trying to replicate the US/UK strategy…