Now that I have shared with you the uses of mathematics in Central Banking, let me also discuss some challenges/difficulties that the “use of numbers” pose in our day-to-day office work vis-a-vis the general perception prevalent in the public domain due to improper interpretation of maths. Let me give three examples: a.
Gold Purchases: You may have come across news reports about the large current account deficit facing the country and the large import of gold being one of the important reasons for this. We often hear the argument that people buy gold as a hedge against inflation or that they are investing in a “safe asset”.