RBI’s unhealthy obsession with inflation - News Summed Up

RBI’s unhealthy obsession with inflation


Based on the Monetary Policy Framework signed between the government and the Reserve Bank of India (RBI) on February 20, 2015, India’s monetary policy moved into an Inflation Targeting (IT) framework. Some economists, therefore, advocate moving away from the Inflation Targeting framework of the RBI and towards a Nominal GDP Growth Targeting framework. Nominal GDP growth is the sum of real GDP growth and inflation. So, the net effect on nominal GDP growth depends on the magnitude of inflation and real GDP growth. This would prevent real GDP growth from worsening further.


Source: dna June 16, 2018 21:33 UTC



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