Monetary Policy Considerations after the Crisis: Practitioners’ Perspectives

Economic stability can be seen as an essential component of any strategy for inclusive development. To the extent that central banks play a role in providing that stability, the experience of the crisis has led to considerable thinking and debate on its implications for central bank mandates, strategies and instruments in the quest for maintaining stability. A lot of this is being articulated by central bankers around the world, as they try and distill the lessons of the crisis into what they should be doing more or less of, or differently and how they should go about fulfilling possibly changed objectives. These issues have been explored in this talk. These issues, reflected in recent articulations by a cross-section of central bankers and use this as a backdrop for our own thinking on how to deal with challenges to macroeconomic stability. [Plenary Lecture at the conference “Economic Policies for Inclusive Development” organized by Ministry of Finance, Government of India and National Institute of Public Finance and Policy at New Delhi.]