The Reserve Bank of India shifted the policy framework from Monetary Targeting Approach to Multiple Indicators Approach in April 1998. Since the present framework is also subject to criticism, this paper aims to examine, how the transition of monetary policy from Money Targeting to Multiple Indicators approach has impacted the economic outcomes by making the comparison of the two frameworks. The results reveal that Multiple Indicators Approach is effective in promoting growth and controlling inflation. The growth rate has become more stable and the variability in the inflation also reduced in the Multiple Indicators Approach. The growth rate of M3 decreased but its variability has increased
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