{"id":35536,"date":"2018-10-31T18:04:16","date_gmt":"2018-10-31T12:34:16","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35536"},"modified":"2018-10-31T18:04:16","modified_gmt":"2018-10-31T12:34:16","slug":"madness-in-monetary-policy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/madness-in-monetary-policy\/","title":{"rendered":"Madness in monetary policy?"},"content":{"rendered":"<p><a href=\"http:\/\/indianexpress.com\/profile\/columnist\/surjit-s-bhalla\/\"><span style=\"font-weight: 400;\">Madness in monetary policy?<\/span><\/a><\/p>\n<p><strong>Context:<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The Lack of an honest debate on inflation and monetary policy, is hurting India\u2019s growth<\/span><\/p>\n<p><strong> Introduction:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The entire sustained decline in inflation from 5+ levels has been missed by the RBI.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Last 12 months average inflation of 3.4 per cent with the maximum of 5+ observed in August 2016.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Deputy Governor in charge of monetary policy, Viral Acharya opines: \u201cHigher real rates are justified in the meantime as absent efficient transmission, attempts to address symptoms of balance-sheet problems with aggressive monetary easing get wasted and can even backfire by misallocating investments, fueling asset price inflation, creating false hopes of a growth boost, and relaxing the pedal on deeper structural reforms.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">At the release of an edited book by Rakesh Mohan, one of India\u2019s leading economists and thinkers, there ensued a panel discussion on what policies were needed to get India growing again.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The eminent panel fully recognised that the economy, particularly the manufacturing sector, was not in good condition<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The panel discussed the importance of sun-spots affecting jobs.<\/span><\/li>\n<\/ul>\n<p><strong>Key points:<\/strong><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The median real policy rate in emerging economies is 0.8 per cent.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Many economies (including Bangladesh and Vietnam) have negative real policy rates.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Excluding Brazil and Russia, India has the highest real policy rate in the world, and the Russian rate is only 50 bp higher.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Madness in monetary policy? Context: The Lack of an honest debate on inflation and monetary policy, is hurting India\u2019s growth Introduction: \u00a0The entire sustained decline in inflation from 5+ levels has been missed by the RBI. \u00a0Last 12 months average inflation of 3.4 per cent with the maximum of 5+ observed in August 2016. Deputy&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/madness-in-monetary-policy\/\">Continue reading <span class=\"screen-reader-text\">Madness in monetary policy?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35536","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704683463},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35536"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35536\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}