Monetary policy in tough times - case study approach

Monetary policy is said to be formulated with the three-fold objectives of achieving sustainable growth, keeping inflation within limits and controlling external imbalances. In this paper, we have done a study of such cases wherein the economic environment has been tough in India, and the policy, actions were taken by the central bank of the country during those times, have either, rescued the country from the crisis, or prevented the crisis from hampering Indian economy drastically. By tough, the researchers mean high inflationary conditions, subdued growth or huge external imbalances. These situations are studied and analysed, using a case study approach as a qualitative research tool. A set of right monetary policies, in response to these situations, are accordingly suggested.