Ajay Shah: Losing the plot on inflation

The recent inflationary spiral and the nasty responses of the government to it are acutely painful. This reminds us of the need to establish a sound monetary policy framework, which is primarily focused on delivering low and stable inflation.

How did we get in this mess, and how would a reformed monetary policy framework make a difference? We got into this mess largely because of faulty monetary policy.

Governor Reddy likes to say that all possible measures will be used to combat inflation. Unfortunately, his actions are very different from his words. One critical lever that can combat inflation