India has been one of the countries that have adopted the Inflation Targeting (IT) framework for monetary policy. Several macroeconomists have been making an interim assessment of the IT framework as adopted by India. In context to this, review the Indian monetary policy scenario since the BOP crisis in the early ’90s, clearly bring out how the IT framework has performed since its adoption in 2016

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ANSWER Inflation targeting is a monetary policy where a central bank follows an explicit target for the inflation rate for the mediumterm and announce... View the full answer