Effectiveness Of Monetary Policy In Controlling Inflation: Evidence From India

This research paper investigates the effectiveness of monetary policy in controlling inflation in India,
utilizing empirical analysis and insights from existing literature. Through regression analysis and
examination of historical trends, the study explores the relationship between monetary policy variables and
inflation outcomes, providing valuable implications for policymakers and stakeholders. Findings suggest
significant impacts of policy instruments such as the repo rate, reverse repo rate, and Cash Reserve Ratio
(CRR) on both Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation. Policy
recommendations include clear communication, flexibility in policy instruments, and coordination with
fiscal authorities to achieve price stability and sustainable economic growth. Future research avenues
include exploring dynamic effects of policy changes, sectoral impacts of monetary policy, and comparative
studies with other countries' experiences.