Is RBI just an inflation-targeter?

Central bankers in many big emerging market economies have suddenly shifted their focus from aggressively attacking inflation to creating conditions for growth. The rapidly worsening sovereign debt-cum-banking crises in Europe have caused a twin scare among emerging market central bankers. One, there is certainty that Europe is entering a phase of mild recession. Two, the magnitude of the sovereign debt/banking crises has created a permanent fear of a possible “liquidity freeze around the corner”, like the one that had occurred for several quarters after the 2008 global financial meltdown. Growth rates fell sharply in emerging markets after that episode.

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