The latter captures the growth objective by ensuring provision of adequate or appropriate liquidity to support investment and export demand. The relative emphasis placed on price stability and economic growth is modulated according to the circumstances prevailing at a particular point in time and is clearly spelt out, from time to time, in the policy statements of the Reserve Bank.
Of late, considerations of macroeconomic and financial stability have assumed an added importance in view of increasing openness of the Indian economy. (b) Changes in the framework A monetary targeting framework was in place since mid-1980s and till 1997-98 with broad money (M3) as an intermediate target.