India can move in direction of providing guidance on liquidity, says MPC’s Ashima Goyal
Indian policymakers can follow the US Federal Reserve's guidance on liquidity conditions to mitigate market shocks, according to Ashima Goyal, a member of the Monetary Policy Committee. The US Fed Committee provides guidance on liquidity, which is crucial in many inflation targeting countries. India can also move in this direction as markets mature and deepen, making shocks less impactful.
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