<h1>RBI Conference Explores Inflation Measurement, Neutral Interest Rate, and Financial Stability Challenges in Policy Making.</h1> The Reserve Bank of India's Statistics Day Conference highlighted the challenges in using statistical analysis for policy making. Key issues discussed included the choice between WPI and CPI for measuring inflation, the estimation of potential output and threshold inflation for monetary policy, and the concept of a neutral interest rate. The conference also addressed the complexities in determining an equilibrium exchange rate and the development of financial stability indicators. These discussions underscore the difficulties statisticians face in providing robust analyses to guide policy decisions in an increasingly complex and integrated world.