The journey of inflation targeting in India

Radhika Pandey (), Ila Patnaik () and Rajeswari Sengupta
Additional contact information
Radhika Pandey: National Institute of Public Finance and Policy
Ila Patnaik: Aditya Birla Group of Companies

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

Abstract: It has been eight years since India adopted the inflation targeting (IT) framework for its monetary policy. In this paper we present a comprehensive analysis of the IT regime, addressing several critical aspects. We evaluate the performance of inflation over this period, and review the conduct of monetary policy during and after the Covid-19 pandemic. We also identify key challenges that persist particularly in context of the Impossible Trilemma and highlight issues that may require further examination in order to improve the effectiveness of the IT framework in the future.

Keywords: Inflation Targeting; Reserve Bank of India; Monetary Policy Committee; CPI Inflation; Impossible Trilemma (search for similar items in EconPapers)
JEL-codes: E4 E5 F3 (search for similar items in EconPapers)
Pages: 62 pages
Date: 2024-10
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:ind:igiwpp:2024-022

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