India has the highest inflation rate among developing nations, and the central bank might find that interest-rate increases are ineffective in cooling off the economy, according to The Economist. Without a clear inflation mandate, the Reserve Bank of India is pursing a target known only to those at the central bank. "To get inflation back under control there is a case for redefining the role of the bank to focus on primarily on price stability," The Economist notes.

Related Summaries