Context: To facilitate a non-disruptive exit out of the easy money regime, the Reserve Bank of India (RBI)’s main challenge would be in managing the tension between restraining inflation and supporting recovery.
Challenges of the RBI:
Way forward:
Conclusion: It is better to be rough right, as Keynes said than be precisely wrong. That should be the guiding principle for RBI as it navigates its way out of the crisis-driven easy money policy.