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Inflation Targeting & India's Monetary Policy

posted 9 Oct 2016, 10:55 by harp guy
Monetary Policy deals with managing the variables that affect the quantity and quality of money in an economy. These variables include inflation, interest rates, exchange rates, money supply, and cash reserve requirements. India's Monetary Policy has in the past been attempted to manage all these variables--the results have not been very good. A new policy put in place in 2013 focuses on inflation targeting, i.e., using interest rates to keep inflation within a range of 4%  plus-minus 2%. 
This article examines the benefits of inflation targeting and prescribes ways to improve on the existing system.  
harp guy,
9 Oct 2016, 10:55