A money growth reference value and the consensus model But why would monitoring money growth be useful, as long as policymakers followed a disciplined policy of adjusting their policy rate to ongoing economic developments, as reflected in the policy rule in the consensus model?
The guidelines for MMMFs were announced by the Reserve Bank in April 1992. The Reserve Bank had made several modifications in the scheme to make it more flexible and attractive to banks and financial institutions. These guidelines were subsequently incorporated into the revised SEBI regulations.