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Essay text:
I. G. Patel
The last decade has witnessed a radical shift in the way central banks all around world function. This paradigm change has implied not only a change in the strategies adopted and pursued by central banks, but also in the way in which central banks have implemented their respective strategies. For instance, the US Federal Reserve, since 1994, appears to have been providing forward guidance1, while the European Central Bank appears to be in the mould of keeping the markets informed rather than guiding it. The RBI has taken a middle path of sharing the analysis in addition to information, but has never preached and guided the market participants...
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