AIJA AHMAD BHAT

^{_{MR.AIJAZ AHMAD BHAT}}

^{_{PH.D  SCHOLAR}}

^{_{SUPERVISOR: DR JAVAID IQBAL KHAN}}

^{_{DATE OF JOINING}}

On Autonomy of Monetary Policy in India

Achieving Goals of economic policy is an acid test for efficient policy making and its implementation. It not only puts to test the intellect of the policymakers but brings to account vibrancy and credibility of the relevant institutional arrangements. The broad and universal macroeconomic goals of monetary policy are economic growth, price stability, and employment. With rampant interventions and added secondary burdens to the institution of monetary policy, these goals become incompatible. There has occurred a substitution of traditional goals of monetary policy by emerging macroeconomic necessities and at times political compulsions. This has resulted in remarkable trade-offs and consequent negative impact on macroeconomic growth. This effect is more pronounced in case of developing/emerging erstwhile colonial economies. India is a classic case. The proposed study aims to deliberate upon this line of thought and argument in the Indian context. It discusses the adversaries of a “caged” monetary policy and compares/contrasts with an autonomous regime. It proposes to investigate if, at all  autonomy of monetary policy and the associated institutional arrangement can be a panacea for realizing broad macroeconomic goals which monetary policy is designed to achieve in changing macroeconomic scenarios. Accordingly I tend to explore:

1. What is an Ideal monetary policy for an emerging economic power like India?
2. What is the best theoretical perspective an Ideal explaining monetary policy?
3.  Has the nature and role of monetary policy in Independent India Changed in line with the changing economic scenarios?
4.  Is India's monetary policy delivering Macroeconomic goals in consonance with the aspirations of policy planners and general public?
5. How does India's monetary policy fit in the emerging debate of autonomy?