China, Nigeria, Malaysia and India) have price stability as one of the key objectives of monetary policy (Table 2). Multiple instruments, including quantitative tools such as the cash reserve ratio, were used to moderate the pace of domestic credit growth as well as monetary impact of large capital inflows in China, India and Russia.
Challenges relating to capital flow volatility Beset by the euro zone sovereign debt crisis and the aftershocks of the global financial crisis, the world economy is now shrouded in darkness as it traverses a long and deep trough. We have no means of seeing where it may come to an end nor yet of knowing what awaits us up ahead.