In an increasingly complex and interconnected economic environment, central banks worldwide face the formidable challenge of simultaneously managing monetary policy, price stability, and financial stability—a trilemma that demands nuanced understanding and carefully calibrated action.
This talk will examine how monetary policy interventions aimed at containing inflation can at times conflict with the goals of financial stability and economic growth, particularly in an economy undergoing rapid structural transformation. Dr. Dholakia will unpack the evolving dynamics of inflation in India, the interplay between fiscal pressures and monetary decisions, and the influence of global shocks on domestic economic stability.
Drawing on his extensive experience across several high-level government committees—including pay commissions, public expenditure management bodies, financial sector statistics groups, and state-level fiscal reform panels—he will demonstrate how evidence-based policymaking and strong statistical frameworks contribute to more effective macroeconomic governance.
The session will also spotlight the emerging challenges before the Reserve Bank of India in the post-pandemic landscape: managing liquidity, sustaining growth momentum, anchoring inflation expectations, and safeguarding the financial system amid technological disruptions and global uncertainties.