Thirdly, in a dynamic setting, when the financial markets are continually evolving, and payment systems and technology are changing, one may not find a clear cut evidence of stability in the money demand, which is taken as a basis for intermediate targeting; and in such circumstances, one needs to look also at other relevant indicators.
It is not that such dilemmas are specific to us and by and large, countries follow a menu approach or a ‘check list’ to track a number of relevant variables. Fourthly, the dilemma that the central bank faces as a manager of public debt and the monetary authority is well known.