About this document
Rules vs Discretion in Monetary Policy by Krishna Patel is a document available to read on EtoBox.
The document discusses the debate around whether monetary policy should be rule-based or allow for discretion. A rule-based policy follows predetermined guidelines and is more predictable, credible and transparent. However, it does not allow the policymaker to respond flexibly to changing economic conditions. Discretion allows responding to different problems but lacks consistency and can undermine credibility over time. India has moved toward adopting inflation targeting, which sets inflation as the key ta
- Author
- Krishna Patel
- Language
- EN