I hope that I can progress some way towards meeting its highest standards in the form of this talk, by raising an issue that is germane to all of us in today’s forum and that is worthy of being tackled in due course – that of, Monetary Transmission in India: Why is it important and why hasn’t it worked well?
Let me start with some technical jargon and then explain from first principles the part of it I wish to focus on. With the amendment of the Reserve Bank of India Act in 2016, the “primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth”.