The least we need in the current circumstances is a less simplistic approach. “In India, we have not favoured the adoption of inflation targeting, while keeping the attainment of low inflation as a central objective of monetary policy, along with that of high and sustained growth that is so important for a developing economy.
The G20, which has responsibility for the international reform agenda, has identified the priorities for developing countries to include:   strict application of the Basel I framework and adherence to the Basel Core Principles together with the adoption of a clear time-table for moving to Basel II and Basel III;    adherence to international standards and codes, for example, IFRS, FATF standards for anti-money laundering as well as other standards applicable to the insurance and securities sectors; and    the promotion of regulatory cross-border co-operation on information exchange.