Ten years of inflation targeting: RBI’s monetary policy framework has worked could still be improved

Before FIT, Indias monetary policy framework suffered from two drawbacks. First, even when targets of money supplyan intermediate metric considered the main determinant of inflation over long spans… India's flexible inflation targeting (FIT) regime, adopted in 2016, has served the country well. The Reserve Bank of India (RBI) has a better handle on inflation and enjoys greater credibility. A good framework, however, could be made better. Here’s what can …