Updated Dec 28, 2020 | 22:23 IST The paper authored by Harendra Kumar Behera and Deputy Governor Michael Debabrata Patra finds a steady decline in trend inflation to 4.1-4.3% since 2014, until just before the pandemic. Representational Image | Photo Credit: IANS Key Highlights A target set too below the trend imparts a deflationary bias to monetary policy, said the paper "A target that is fixed above trend renders monetary policy too expansionary and prone to inflationary shocks and unanchored expectation," it further added. India's inflation target is set for review in March 2021 The Reserve Bank of India on Monday issued a working paper on measuring trend inflation in India which is authored by Harendra Kumar Behera and Deputy Governor Michael Debabrata Patra. Released ahead of the review of the inflation target in March 2021, the paper argues that maintaining the inflation target at 4% is appropriate for India. As per the current mandate, RBI is required to maintain inflation at 4% with a lower tolerance of 2% and an upper limit of 6%.