Q.3) How the challenge of taming the inflation for RBI is different during the second covid wave as compared to the first? How RBI dealt with the ‘impossible trinity’ during the two waves? (10 Marks)

“Mentor’s Comments”

  • https://www.livemint.com/opinion/columns/prices-profits-and-the-pandemic-what-rbi-could-do-11622657858665.html
  • In the intro, mention the important role played by the central bank during both the waves to soften the blows of pandemic for economy.
  • In the body, mention the difference in inflationary pressure this time as the global recovery due to asymmetric global recovery which resulted in the rising prices globally. Next discuss the differences in the challenges RBI faced in dealing with the impossible trinity during the two waves in which it had to stabilise the rupee, maintain the low interest rate while keeping an eye on inflation.
  • Conclude by mentioning the need for the RBI to focus on the inflation taming as real interest rates are entering into the negative territory.
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3 years ago

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3 years ago

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3 years ago

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3 years ago

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3 years ago

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3 years ago

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3 years ago

Payment I’d 115009045817

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Payment Id : 115213946268

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3 years ago

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3 years ago

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