The problems of Indian monetary policy

Ila Patnaik continues her series of newspaper columns that shed light on Indian monetary policy: 13 June, 21 June. Particularly interesting is this piece in today's Indian Express which deals with a question that is on everyone's mind. When RBI decided to use interest rates to combat inflation in the early 1990s, why were such large interest rate hikes required? Why do other central banks achieve the same task with small... [read full story]