Monetary Policy in India (PDF)

Chetan Ghate is Professor at the Economics and Planning Unit, Indian Statistical Institute, Delhi. His primary areas of research are economic growth and development, monetary and fiscal policy in EMEs, and the Indian macroeconomy. He is a winner of the 2014 Mahalanobis Memorial Gold Medal awarded by the Indian Econometric Society (TIES). He was a member of the Technical Advisory Committee on Monetary Policy at the Reserve Bank of India from February 2013 to September 2016. He was also a member of the expert committee to revise and strengthen the monetary policy framework set up by the Reserve Bank of India in September 2013. He is currently a member of the monetary policy committee at the Reserve Bank of India.



Kenneth Kletzer is Professor of Economics at the University of California, Santa Cruz. His primary areas of research are international economics and macroeconomics, and many of his publications concern financial frictions in open economies, sovereign debt, and macroeconomic policy coordination. Kletzer has written on capital account liberalization and monetary policy for India, and is a member of the research panel for the India Policy Forum of the National Council for Applied Economics Research and Brookings Institution.

“By framing the issues related to monetary policy of India in a class of microfounded models, the book brings the analysis closer to contemporary macroeconomic thinking. … the volume successfully manages to present a detailed analysis of issues concerning monetary policy design in an emerging market economy like India based on contemporary macroeconomic theory. It certainly should become an essential reader for everyone interested in the macroeconomic policy of India: students, teachers, and policymakers alike.” (Parag Waknis, Economic and Political Weekly, Vol. 53 (28), July, 2018)

“The book should be required reading for those observing India’s macroeconomy, as well as an essential possession of those who are involved in making policy for/ dependent upon India’s macroeconomy. The essays do not get lost in history, but thoroughly ground current Indian macroeconomic developments in up-to-date economic theory; they identify where the theory may be inapplicable to Indian conditions, and in some cases effectively demonstrate how that problem can be overcome.” (Mihir Sharma, Business Standards, January, 2018)

“The book deals with various aspects of monetary policy in India viz. its formulation, implementation, regulation, transmission and challenges. It makes for an interesting read, especially for practitioners, economists, policy makers and students of monetary policy. The issues covered in the book are relevant for other developing and emerging market economies.” (B. L. Pandit, Indian Economic Review, December, 2017)

“The volume edited by Ghate and Kletzer is perhaps the first attempt … to bring together a richer set of New Keynesian analyses of the Indian economy. It should thus be read by policymakers, monetary policy analysts, academics and economics students. … The volume edited by Ghate and Kletzer is important, and needs to be read, because of its insights into how the RBI can give more empirical and theoretical heft to its policies in this new era.”