Even though there has been an increase in the number of central banks adopting inflation targeting since the early 1990s, a number of central banks, notably the Federal Reserve, retain multiple objectives. I am not a monetary scholar, but I do feel that, given the current domestic and international complexities, we need to continue with a flexible framework for monetary policy.
The least we need in the current circumstances is a less simplistic approach. “In India, we have not favoured the adoption of inflation targeting, while keeping the attainment of low inflation as a central objective of monetary policy, along with that of high and sustained growth that is so important for a developing economy.