India adopts flexible inflation targeting | Business Standard News
India adopts flexible inflation targeting | Business Standard News
My VIEW
My VIEW
This move will infuse
transparency in the thought process of policy makers. At this stage of economic
development, when analysts and economists dissect and find reasons or attribute
motives for every utterance by the Finance Minister or RBI Governor, such transparency
will give some relief and make debates more focussed. Having said that, let us
not talk too much about responsibility and accountability of either side. Like
Railway Time Table tells you about late running of trains, Inflation Target
will tell you what was the aim of the policy makers at a given time.
Aberrations will be explained from time to time.
transparency in the thought process of policy makers. At this stage of economic
development, when analysts and economists dissect and find reasons or attribute
motives for every utterance by the Finance Minister or RBI Governor, such transparency
will give some relief and make debates more focussed. Having said that, let us
not talk too much about responsibility and accountability of either side. Like
Railway Time Table tells you about late running of trains, Inflation Target
will tell you what was the aim of the policy makers at a given time.
Aberrations will be explained from time to time.
M G Warrier
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