== Economics and Planning Unit, ISI Delhi

Upcoming seminars

Please register for the seminar in order to receive invitations, by clicking the button below: For questions, please contact our seminar coordinator Debasis Mishra at dmishra [at] isid.ac.in.
Our past webinars (some with recordings) have been archived here:
Title: A well-targeted interest rate policy
Speaker: Gurbachan Singh, (Visiting Professor) Ashoka University
Date and Time: 12 May 2023, 11:30 AM
Venue: Seminar Room-2
Abstract: The central bank faces a trade-off while using its interest rate policy for the purpose of macroeconomic stability. So, the policy is not very effective. Also, the prevailing interest rate policy includes a quasi tax-subsidy scheme. In, say, a recession when the central bank lowers the interest rate, it gives a quasi subsidy to borrowers and it imposes a quasi tax on savers. So, the policy is redistributive. Also, the changes in interest rates affect asset prices. So, ceteris paribus, prevailing policy has adverse side-effects for asset price stability. This can, in turn, affect banking stability as well (e.g. the Silicon Valley Bank case in the US). So, the prevailing policy is also blunt besides being non-transparent. Is it possible to move towards an alternative interest rate policy that is effective, transparent and well-targeted? Yes.