Monetary Policy Committee — Mains Questions

Critically analyze the effectiveness of the Monetary Policy Committee (MPC) in achieving its inflation targeting mandate in India since its inception. Discuss the challenges it has faced and suggest measures to enhance its efficacy.

Examine the composition and decision-making process of the Monetary Policy Committee (MPC). How does this institutional framework contribute to the transparency and accountability of monetary policy in India?

Discuss the various channels through which changes in the policy repo rate by the MPC are transmitted to the real economy. What are the major impediments to effective monetary policy transmission in India?