The RBI’s inflation targeting framework (ITF) completes a decade this year. It is not just a major milestone in India’s monetary policy but also in India’s macroeconomic framework. The ITF has been successful in lowering inflation in India in its first 10 years, but big challenges remain going forward, writes Amol Agrawal What is ITF? How did it start? In the 1970s, inflation increased in most economies due to rise in oil prices and failure of monetary policy. Economist Milton Friedman proposed monetarism to tackle inflation, but that did not work. The inflation targeting framework (ITF) emerged from the shadows of monetarism.