In a stylized world, where there is a single monetary policymaker who has considerable confidence in a model of the economy, effective communication would include a forecast derived from this model. This forecast would incorporate a policy path that yields the best economic outcomes based on that single policymaker’s views. However, we don’t live in such a simple world.
Our Board, officers and staff have been inspired by his example and the address delivered by him with great passion and utmost sincerity. Mr. President, as agreed in Mumbai when we met recently, I will share my thoughts on certain aspects of the Indian economy – randomly encompassing the recent past, the short-term outlook and the way forward.