.......It has also been pointed out that the lack of clarity in the Reserve Bank of India (RBI) on the monetary policy framework—which enunciates the goals, strategies and operational tactics for this framework—coupled with large fiscal deficits have contributed to the prevalence of high and persistent inflation in India in recent years. Before blaming RBI, in particular, for failing to control inflation, however, it is important to examine a few conceptual issues involved from first principles............
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