The essence and significance of Monetary policy

Abstract

The monetary policy framework in India from the mid-1980s to 1997-98 can be described as
a monetary targeting framework based on the Chakravarty Committee's recommendations
(1985). Developed countries such as the United States, the United Kingdom, Japan, Canada,
and Australia, for example, use the overnight interbank rate as their primary operational aim.
The European Central Bank (ECB) uses a corridor method for short-term market interest
rates, with its deposit facility providing a floor and its marginal lending facility providing a
ceiling.