Thursday, July 18, 2013

Is RBI's navigation system for monetary policy faulty?

Medical science says that poor diagnosis leads to poor treatment. If the data based on which an inference is to be made is either wrongly collected or the sample size is poor, then the inference and recommendation made on it will not have the desired effect. In some cases it can also be counter-effective. India’s inflation data and RBI’s policy based on it also runs on the same logic....................

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