RBI paper argues for retaining 4% inflation target1 min read 28 Dec 2020, 09:48 PM IST
The RBI working paper, co-authored by deputy governor Michael Patra, says actual inflation outcomes must converge to trend after short fluctuations die out
Study shows a steady decline in trend inflation since 2014 to 4.1-4.3% just before Covid-19 struck, says the paper
The inflation target is likely to be retained at 4% in the medium term, a Reserve Bank of India (RBI) working paper suggested on Monday. The paper, authored by Harendra Kumar Behera and Michael Debabrata Patra, goes beyond the stiff formality associated with central bank literature and veers into colloquialism, ending it by saying: “If it ain’t broke, don’t fix it".
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