Time to Focus on Inflation Again

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With the latest retail inflation figures coming in at 6.95%, the focus should shift to inflation and monetary policy. The RBI is bound by an inflation targeting mechanism, where it is accountable to parliament when inflation is in excess of 6% for three consecutive quarters. Anupam Manur and Mihir Mahajan discuss the evolution of central bank mandates, the inflation targeting mechanism and why the RBI has been let-off easily this time despite inflation breaching the comfort zone.

Notes:

  1. Deccan Herald report on inflation

  2. Hindi Films adjusted for inflation [cartoons]

  3. Petrol prices [twitter thread by James Wilson]

Follow Anupam on twitter : https://twitter.com/anupammanur

Follow Mihir on twitter : https://twitter.com/mihirmahajan

Check out Takshashila’s courses: https://school.takshashila.org.in/

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