The Reserve Bank of India’s trilemma choice : A tale of five governors
Aariya Sen, et al.
The Reserve Bank of India’s trilemma choice : A tale of five governors Economic and Political Weekly Vol.58; No.41 - 14 Oct. 2023 pp. 17-22
The Reserve Bank of India, like most central banks, has to choose between the three corners of the impossible trinity, that is, free capital flows, monetary policy independence and exchange rate stability. This article uses the Aizenman et al (2008) framework to analyse the trilemma choice of the RBI over 2000–22. The results provide interesting insights into the RBI’s shifting position in managing the impossible trinity over the years.
Economics
Fiscal Responsibility and Budget Management (FRBM) Act
Reserve Bank of India
Monetary policy
Capital flows
Exchange Rate Stability
The Reserve Bank of India’s trilemma choice : A tale of five governors Economic and Political Weekly Vol.58; No.41 - 14 Oct. 2023 pp. 17-22
The Reserve Bank of India, like most central banks, has to choose between the three corners of the impossible trinity, that is, free capital flows, monetary policy independence and exchange rate stability. This article uses the Aizenman et al (2008) framework to analyse the trilemma choice of the RBI over 2000–22. The results provide interesting insights into the RBI’s shifting position in managing the impossible trinity over the years.
Economics
Fiscal Responsibility and Budget Management (FRBM) Act
Reserve Bank of India
Monetary policy
Capital flows
Exchange Rate Stability