India calls for clearly communicated monetary policies

April 12, 2014 08:53 pm | Updated November 16, 2021 07:23 pm IST - Washington

Arvind Mayaram

Arvind Mayaram

Calibrated and clearly communicated monetary policies will build trust and improve business sentiments across the world by leaving little room for speculations, Economic Affairs Secretary Arvind Mayaram said on Saturday.

“We believe monetary policy cooperation is extremely crucial in the current juncture. This calls for calibrated monetary policies by advanced economies which are communicated clearly among our central bankers and between central bankers and the market plus a willingness to listen to others,” he said.

Recent risks of very low inflation in euro areas might demand use of appropriate tools in the coming time to thwart deflation tendencies, Mr Mayaram said in his intervention at the G20 Finance Ministers and Central Bank Governors meeting.

Mr Mayaram is representing India during the ongoing spring meet of the International Monetary Fund and the World Bank.

“However... calibrated and clearly communicated policies will greatly act as trust builders and improve the business sentiments across the globe by leaving little room for speculations.

“In terms of exchange rate policy, while flexible exchange rates are desirable, a cautious approach should be followed before going for currency revaluations which can result in trust deficit and currency wars,” he said.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.