https://www.taxtmi.com/news?id=16289 The text argues for a CPI-based inflation target and institutional reform to keep inflation low and stable, because high and variable inflation distorts price signals, raises nominal interest costs, redistributes against savers and the poor, and increases investment risk. Monetary policy should anchor inflation expectations by managing demand over a medium-term glide path, address supply shocks indirectly by restraining non-food demand, and use pragmatic interventions for exchange-rate and financial-stability risks. Fiscal discipline, improved financial intermediation to lower credit spreads, and aligning small-savings rates to market yields are necessary complementary measures. en-us Tue, 21 Jun 2016 18:01:33 +0530 Tue, 21 Jun 2016 18:01:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=16289 The text argues for a CPI-based inflation target and institutional reform to keep inflation low and stable, because high and variable inflation distorts price signals, raises nominal interest costs, redistributes against savers and the poor, and increases investment risk. Monetary policy should anchor inflation expectations by managing demand over a medium-term glide path, address supply shocks indirectly by restraining non-food demand, and use pragmatic interventions for exchange-rate and financial-stability risks. Fiscal discipline, improved financial intermediation to lower credit spreads, and aligning small-savings rates to market yields are necessary complementary measures. News - Tue, 21 Jun 2016 18:01:33 +0530 https://www.taxtmi.com/news?id=16289