His reply – “The problem with QE is it works in practice but it doesn’t work in theory” – provoked laughter, but it is so true of monetary policy more generally. Monetary policy decision making is always complex and severely testing. It is typically undertaken in an explosion of diverse views, each differing from the other in expressing intensity and fervour.
The endeavour of our MPC has been to try to share with the public through its resolutions and through individual minutes a set of balanced assessments so that monetary policy in India becomes transparent and predictable.