Propose recommendations tothe mpc to keep the cpi within the target range
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ANSWER:
The monetary policies of India can be improved in many ways. The MPC is entrusted with the "task of fixing the benchmark policy" rate needed for taking care of inflation within the specified target level.
EXPLANATION:
Today the focus of the government and RBI is to control inflation and work towards economic growth of the country. The government and RBI should work in coordination for fixing the interest rates.
It should have a logical reason for controlling inflation. The CPI today includes a number of sectors which are doing well. The main focus is on employment generation and growth of the country.
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