I had posted on how RBI Governor Mr Subbarao is ushering in more transparency at the central bank.
His recent monetary policy statement for Q3 2009-10 is just 10 pages long (or short). It shows 13 pages but first two pages have nothing in it and last page is blank. It is a big improvement from the 40-50 pages statement which came earlier.
However, the statement should be read with macroeconomic and monetary developments report released yesterday. It is around 90 pages long which could be cut short as well. The Macroeconomic and Monetary Developments report is released a day before the monetary policy report. But we hardly get regular economic analysis from RBI, so some might say it is ok to have a detailed analysis quarterly.
Earlier Governor’s monetary policy statements repeated most of the analysis in macroeconomic and monetary developments report. Now the statement simply says:
This Policy Review statement should be read and understood together with the detailed review in Macroeconomic and Monetary Developments released yesterday by the Reserve Bank.
Welcome change. Helps job of economists/analysts so much. It is also environment friendly.