Thread by @NDTVProfitIndia

The classic trilemma of central banking has morphed into a quadrilemma for India.

With more objectives than instruments, how can RBI navigate this ‘quadrilemma’?

JPMorgan's Sajjid Chinoy writes in #BQOpinion.
bit.ly/35q3iGg

The RBI is facing a 'quadrilemma' as it balances multiple objectives ranging from growth and inflation to capital flows and the currency.

One part of this is the 'problem of plenty', writes @jpmorgan's Sajjid Chinoy in #BQOpinion.

Read: bit.ly/3mavsuB

@jpmorgan A flood of capital flows leads RBI to the question – should it absorb dollars and add liquidity?

That's in keeping with its growth objective but runs counter to inflation concerns, writes @jpmorgan's Sajjid Chinoy.

#BQOpinion
bit.ly/3hkPWxj

@jpmorgan As the RBI tries to manage a 'quadrilemma' of challenges, preventing a sharp and sustained appreciation of the trade-weighted exchange rate is important, writes @jpmorgan's Sajjid Chinoy in #BQOpinion.
bit.ly/2ZxokyP

@jpmorgan India is faced with an unprecedented hit to growth, inflation much above target, an unrelenting flood of capital inflows, and a trade-weighted exchange rate that still appears expensive, writes @jpmorgan's Sajjid Chinoy.

Read his #BQOpinion column: bit.ly/3mavsuB

@jpmorgan Navigating a trilemma of policies will be more art than science, and relative priorities may have to change in real-time, writes @jpmorgan's Sajjid Chinoy. #BQOpinion

Read here: bit.ly/3mavsuB