Page-2 of Macroeconomics

Challenges Before Monetary Policy Committee

The Monetary Policy Committee (MPC) is the body of the RBI headed by its Governor. The body is responsible for taking the important monetary policy decisions for determining the repo rate. The Monetary policy committee is a statutory body established ..

Producer Price Index (PPI): RBI proposes for PPI to measure inflation

The Governor of RBI, D. Subbarao has mooted for a Producer Price Index (PPI) to measure the average change over time in the sale prices of domestic goods and services. Currently, it uses Consumer Price Index (CPI) and Wholesale Price ..


Core inflation is a better indicator of price trends: RBI

According to RBI Governor, Core inflation is a better indicator of future price trends because of its less volatility. As per him an analysis of longer series of over three years shows that core inflation has statistically significant predictive power. ..


Indian economy is facing stagflation: Moody’s

As per the Global financial services firm Moody’s Analytics: Indian economy is going through stagflation, with slow growth and high inflation. RBI can’t be too aggressive in slashing interest rates. WPI inflation rising up to 7.5% every year in May ..


1991-like crisis highly improbable: D Subbarao

As per RBI governor D Subbarao, despite high fiscal and current account deficit it is highly improbable that India could witness the replication of the 1991 economic crisis that was caused by similar reasons. As per him factors like floating ..


Current Monetary Policy of Reserve Bank of India: 3rd Quarter Review 2011-12

Background: The Reserve Bank began exiting from the crisis driven expansionary policy in October 2009. Between January 2010 and October 2011, the Reserve Bank cumulatively raised the cash reserve ratio (CRR) by 100 basis points and the policy rate (the ..