Wednesday, March 21, 2007

Monetary policy difficulties

Two weeks ago I had written about Monetary policy at a crossroads. Today, the front page headlines in the business press were about short-term inter-bank rates going up to very high annualised rates. I think these symptoms are consistent with the picture of an inconsistent monetary policy regime, one where the old operating framework is increasingly problematic. Update: Andy Mukherjee has a Bloomberg column on this.

3 comments:

  1. Ajay,

    Well said.

    I have chronicled the reasons of the recent spurt in money rates as well as suggested a few ideas on the future course of action on my weblog (www.intelligentguess.com).

    More ideas and suggestions are welcome.

    ReplyDelete
  2. Andy Mukherjee echoes your thoughts in today's MINT.

    I hope MINT contacts you soon for a regular coloumn.

    ReplyDelete
  3. I'm contracted to write exclusively for Business Standard within the space of Indian newspapers. :-)

    ReplyDelete

Please note: Comments are moderated; I will delete comments that misbehave. The rules are as follows. Only civilised conversation is permitted on this blog. Criticising me is perfectly okay; uncivilised language is not. I delete any comment which is spam, has personal attacks against anyone, or uses foul language.