OPINIONINFLATION TARGETING AND MONETARY POLICY EFFICACY
Inflation Targeting Has Cost India Jobs Without Controlling Prices
The critique arrives as the RBI completes ten years of formal inflation targeting under Section 45ZA of the RBI Act, prompting a reassessment of whether importing a Western macroeconomic framework built on rising wages and tightening labour markets ever fit an economy where the overwhelming majority of workers are price-takers rather than wage-bargainers. The authors' empirical test, using monthly industrial output and CPI…
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