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Showing posts from April, 2024

Monetary Policy Dynamics: Japan's Pivot and India's Trajectory

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The farewell to negative interest rates and yield curve control “Success in business requires training, discipline, and hard work. But if you're not frightened by these things, the opportunities are just as great today as they ever were." - David Rockefeller As we delve into the complex realm of international finance, we witness a landscape shaped by unprecedented challenges and opportunities. The recent shifts in monetary policy, particularly exemplified by Japan's decision to bid farewell to negative interest rates and yield curve control, have sparked global conversations about the efficacy and implications of unconventional measures. In this blog, we will explore the ramifications of these decisions, particularly in the Indian context, and discuss the pivotal role that exports can play in shaping macroeconomic outcomes. Japan, a stalwart in the realm of monetary policy experimentation, has recently made headlines with its historic decision to terminate the era of negat...