Today the Reserve Bank of India positioned on its web site a Working Paper titled “Monetary Policy Independence under a Flexible Exchange Rate Regime – The Indian Case” underneath the Reserve Bank of India Working Paper Series1. The Paper is co-authored by Harpreet Singh Grewal and Pushpa Trivedi.
In an open economy, central banks confront the unimaginable problem of concurrently preserving trade fee stability, conducting unbiased financial coverage, and benefitting from an open capital account.
Against this backdrop, the paper assesses whether or not the overseas trade market interventions by the RBI to comprise the volatility in INR have had any constraining affect on India’s financial coverage independence throughout 1991 to 2020.
The main findings of the paper are:
Press Release: 2022-2023/903