A proposed inflation targeting (IT) approach to monetary policy has generated vigorous debate in India, where inflation has not dropped much below 10 percent for the past eight years. For India, IT represents a radical change, writes Baker Institute international economics fellow Russell Green, who is currently conducting research in the country. "Many view IT as the only way inflation can be brought back down. Others fear losing the flexibility to consider other factors in determining interest rates."
Read "U.S. monetary policy and the debate about the other Indian IT" in the March 7, 2014, Baker Institute Blog.