摘要：In the recent past, the thrust of the monetary policy of India was on reducing the annual inflation rate. During the year2009 to 2011, the inflation in India has crossed historical records and reached to unprecedented levels, and lying in therange of 9 14 %. The monetary authorities are striving hard to curb the inflation by adopting several monetary policymeasures, the important amongst which are changes in CRR, repo and reverse repo rate, which directly influence themoney supply in the market with immediate effect without creating any distortions in the economy. In this paper theeconometric study of impact of changes in CRR, repo rate and reverse repo rate adopted by the monetary authorities incurbing inflation is carried out and the model is formulated to evaluate the various alternatives to suggest the suitablepolicy based on the existing market scenario which can be implemented to curb the existing level of inflation.
