If one’s business or personal or policy strategy depends heavily on there not being a cyclical downturn, it is a risky one. The road to prosperity is not a road without cyclical ups and downs. But the second lesson we ought to draw from recent experience is that while downturns will inevitably occur, we are not helpless to do anything about their severity.
Improving Transmission: The Way Forward Drawing from its comprehensive analysis, the RBI’s Study Group has suggested a number of steps to enhance transparency and transmission from monetary policy signals to the actual lending rates. Their recommendations pertain to improving transmission based on the existing lending rate system as well as a fundamental reform of the interest rate setting process.