Context: Persistent price pressures make it harder for our central bank to manage conflicting economic forces and ensure stability.
Facts about the current state of inflation in India
Four competing explanation of rising inflation
RBI’s Dilemma between targeting the exchange rate or money supply: is exacerbated by -
Conclusion: The coming months will present RBI with many challenges, as the central bank has to maintain both internal as well as external stability in the midst of a massive shock to the economy.