The Global ANALYST, May 2018 Reserve Bank’s Policy Perceptions* M G Warrier “…….When interest rates and prices in general are set free, when real and financial markets are freed internally and interlinked globally, when the public sector will have to compete in a free market for the resources it requires, when, in fact, the economy acquires all the complexity and at least some of the sophistication of the richer countries, will we be still able to maintain the old baggage of a Quantity Theoretic frame of mind? Should inflation be the only area of concern in fiscal and monetary policy or should we also have to deal on occasion with unduly low investment and employment and untenable interest or exchange rates? Should we not then be familiar with the very great advances made in monetary economics in recent years both in theory and in ferreting out stable and meaningful relationships among a variety of strategic variables?......” -I G Patel (November 1993 in his Foreword to ‘Mo...