As part of our Development Seminar series, Brookings India Distinguished Fellow and former deputy governor of the Reserve Bank of India, Rakesh Mohan, and his co-author Partha Ray (Professor at the Indian Institute of Management, Calcutta) delivered a seminar on “Indian Monetary Policy in the time of Inflation Targeting and Demonetisation“.

Abstract: The period from 2009 to 2013 was dominated by a joint monetary and fiscal stimuli by the Indian authorities prompted by the North Atlantic Financial Crisis (NAFC) in mid-2008. Did these, along with other structural shocks and a hands-off attitude in forex market intervention, play a role in rising inflation and external account instability?

Brookings India Distinguished Fellow Rakesh Mohan and his co-author Partha Ray take us through Indian Monetary Policy over the past 10 years. Focussing on two significant events: significant deterioration of Indian public sector balance sheets and the demonetisation episode of November 2016, their talk  will present the findings from their recent working paper “Indian monetary policy in the time of inflation targeting and demonetisation,” aiming to look at how India’s monetary policy has kept pace with these changes.

Discussant: Shankar Acharya, ICRIER