Changing the Face of Indian Monetary Policy
On Sept. 4, outgoing Reserve Bank of India (RBI) governor Raghuram Rajan handed the reins to Urjit Patel. Rajan jolted the foreign investment community by unexpectedly deciding not to renew his term.
(PUNIT PARANJPE/AFP/Getty Images)
Using quantitative easing to stimulate growth could compound India's inflation problem. Inflation rose to 6.07 percent in July, just above the RBI's 6 percent upper limit, and Patel will be reluctant to risk driving that number any higher by raising interest rates....
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