I am indebted to R. Kannan, Muneesh Kapur, Indranil Bhattacharyya and Partha Ray for their assistance in preparing the paper. The usual disclaimer applies. The references can be found on the Reserve Bank of India’s website. * I.
The ECB – much like other central banks – operates in a new environment where long-run trends, such as population aging, lower long-term interest rates and climate change have become key policy issues. The central banking community needs to better understand their implications for growth, employment and inflation dynamics, so that we can deliver more effectively within our mandates.