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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.


  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 (

    More ideas and suggestions are welcome.

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

    I hope MINT contacts you soon for a regular coloumn.

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


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