The decontrol and expansion of capital markets should have made the access to market intermediated financial resources easier for well established, credit rated large incumbents. Reforms in the banking system have been aimed to bring in greater efficiency by introducing new competition through the new private sector banks and increased operational autonomy to public sector banks.
-5Taylor rule was that it described U.S. monetary policy patterns well over a certain period, one that was associated with a reasonable degree of economic stability. Nevertheless, central bankers who are aware of the merits of the arguments for policy rules have on occasion deviated substantially from the prescriptions of standard policy rules.