..... The truth is that a central bank’s remit, in the words of Paul Volcker, is indeed to manage expectations — but the best way to manage expectations is to make them more rational and informed, through clear announcements of what the causes of inflation are, and what the RBI can, cannot, should not, and will not do. So far all the RBI’s increased transparency has shown is that its governor and senior advisors are happy to ignore the advice of its Technical Advisory Panel — people who have presumably not just read the textbooks, but done their homework, too................
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