Transmission of shocks to India 4. There were two distinct phases in 2008–09 during which the transmission of global shocks – through trade, finance and expectations channels – posed different but significant challenges for the Reserve Bank.
At the same time central banks are quite dissimilar in their constitutions. No two Banks are exactly alike. 3 Nor is it the case that the issues to be addressed are identical at all times in all places. The central proposition remains, however: it is that monetary policy can do certain things; in particular, provide a stable background for the economy.