Wednesday, March 07, 2007
Monetary policy at a crossroads
My column in Business Standard today is titled Monetary policy at a crossroads. It describes nine maladies afflicting monetary policy today, and argues that the problem won't be solved by incremental intensification of the familiar `operating manual' that has been in use at RBI for many decades. One of the maladies concerns the fluctuations of the call money rate away from the corridor - here's the data and a picture. Update (17/3): Suman Bery wrote in BS on the same subject on the 14th.