The Complete Guide to RBI’s Monetary Policy Instruments

RBI monetary policy tools

Reserve Bank of India (RBI) and other central banks employ a range of monetary policy instruments to manage liquidity, control inflation, and promote economic growth. In this guide we will explain these tools and their operations.

What is Tapering and Quantitative Easing?

Tapering1 What is Tapering and Quantitative Easing? Monetary Policy

US Fed Reserve has recently indicated the need for ‘Tapering’ owing to inflationary pressure. Not long ago we were hearing ‘Quantitative Easing’.
We demystify both these terms in simple words.

Helicopter Money as a Monetary Policy tool : Benefit and Risks

helicopter cost 4165540 1920 Helicopter Money as a Monetary Policy tool : Benefit and Risks Monetary Policy

Helicopter Money is a monetary policy concept proposed by economist Milton Freidman to overcome the liquidity and rate transmission challenges. However like everything else in policy making, there are no free lunches. Himanshu Mehra explains the concept and its risks.

Banks being viewed as a panacea for all ills?

Atlas sculpture 4879752 1920 2 Banks being viewed as a panacea for all ills? Monetary Policy

While prompt Regulatory actions have tried to address liquidity and other issues of borrowers, there is heavy reliance on Banks to deliver. However, the borrowers and banks together are awaiting reforms. In the COVID Diaries Part 3, Sumit Kakkar evaluates if banks can do heavy lifting