Price stability is one of two goals assigned to the Federal Reserve by law, but there is also a broad consensus among economic researchers and policymakers that price stability is a desirable objective. Deviations from price stability in the form of persistently elevated inflation rates are costly for the economy for several reasons, some of which I’ll review now.
In India, recognizing the paramount role of exports in the overall growth process of the economy, the Government of India and the Reserve Bank of India have, over time, taken several measures to ensure adequate flow of credit towards export related activities.