Monetary Policy in India
Synopsis
In the present book the working of monetary policy in India has been examined with the help of proximate, intermediate and final goal variables. This piece of work is quite significant in view of the ongoing debate on transmission mechanism of monetary policy. In this book, this debate has been analytically examined with a meticulously chosen ‘Error Correction Model’. The broad conclusion drawn is that the Reserve Bank should target the rate of growth of narrow money supply (M1), rather than broad money supply (M3).
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