The wrong target

Description

RBI recently released the Report of the Expert Committee, chaired by deputy governor Urjit Patel, to revise and strengthen the monetary policy framework. As was expected from the terms of reference and the composition, it was clear ab initio that in line with the recommendations of the Mistry Committee (2007) and Rajan Committee (2009), India would soon have an inflation target of its own, to join the elite club of central banks like that of the UK, irrespective of the fact that advanced economic systems, with seamlessly integrated financial markets, only adopted inflation-targeting just about a decade ago. Our financial markets and institutions will at least take a decade, if not more, to reach that level of maturity, depth and integration. Read more at: https://www.financialexpress.com/archive/the-wrong-target/1222856/

Publication Date

4-2-2014

Publication Title

Financial Express

Publisher

The Indian Express [P] Ltd.

Keywords

Economics, Economic policy, Financial system, Financial markets

Source Link URL

https://www.financialexpress.com/archive/the-wrong-target/1222856/

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