......As monetary policy returns to a more normal setting, RBI and the government will have to address the chronic problems. In India’s case, these are high inflation and high fiscal deficit. In the case of the latter, there is no solution in sight, although the government could achieve its target for the year through ad hoc measures. A more durable solution will have to await the formation of the next government. That leaves RBI with the tough task of bringing inflation under control. Inflation has actually trended down ............
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