My own verdict is that the challenge should not be in the very concept of independence, but rather in the current economic policy mix: loose monetary policy plus tight fiscal policy. By keeping interest rates in negative territory for too long, the redistribution effects of monetary policy and the perceived degree of success of meeting the mandated objectives become more pronounced.
Deepak Mohanty: Wrap up and concluding remarks at the SAARCFINANCE Governors’ Symposium Wrap up and concluding remarks by Mr Deepak Mohanty, Executive Director of the Reserve Bank of India, at the SAARCFINANCE Governors’ Symposium, Kumarakom, Kerala, 10 June 2011.