That trade-off may be related with the desired speed at which the economy converges to its long term equilibrium or may result from considering that 13 it is welfare enhancing to avoid too much volatility of output (see Laurence Meyer, 2001) . If the possibility of a short-term trade-off is accepted then a specification of λ would be useful.
it will have a significant bearing on the HR policies of public sector banks. In view of this, we are in consultation with the Ministry of Finance, Government of India and the Indian Banks Association on operationalising the recommendations. 29.