Reddy's regime: more tactics, less tenets

 If one were to distinguish between the strategic and tactical styles in the conduct of monetary policy, then it can be said that Y V Reddy as the governor of the Reserve Bank of India (RBI) will be a tactician rather than a strategist. Most others, including the immediate predecessors, Bimal Jalan and C Rangarajan, have essentially been strategists.

 The distinction is not only stylistic. It has operational implications. While a strategist aims at achieving final objectives, a tactician reflects more on short-run operations.

 For effective tactical monetary management, one needs a set of policy instrument