RBI and transparency in policies

Abstract

The Reserve Bank of India recently constituted an expert committee to examine the current monetary policy framework and to recommend measures to revive and strengthen it, making it transparent and predictable. The terms of reference include. recommending a nominal anchor for monetary policy. In fact, earlier Raghuram Rajan in his famous report, A 100 Small Steps had observed that a more predictable and transparent policy framework can generate more room for policy makers to respond to large shocks. Still earlier, in September 2000, the RBI Advisory Committee on transparency in monetary policy, and had also recommended assigning a single objective to the RBI, giving it unfettered instrument freedom and holding it accountable for attaining assigned objective.

Read more at: https://www.deccanherald.com/content/365622/rbi-transparency-policies.html