ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by Aariya SenSubscribe to Aariya Sen

The Reserve Bank of India’s Trilemma Choice

The Reserve Bank of India, like most central banks, has to choose between the three corners of the impossible trinity, that is, free capital flows, monetary policy independence and exchange rate stability. This article uses the Aizenman et al (2008) framework to analyse the trilemma choice of the RBI over 2000–22. The results provide interesting insights into the RBI’s shifting position in managing the impossible trinity over the years.

Back to Top