This video examines the work of Nobel laureates Robert E. Hall and Michael Woodford and its relevance to India’s policymakers. It explores how household behaviour, business decisions and inflation expectations influence the effectiveness of economic policy. Why does public trust in the RBI matter? How do interest rate changes affect borrowing, consumption, and investment? And why does coordination between the RBI and the Finance Ministry matter? From controlling inflation to supporting economic growth, the video explains why policymakers must look beyond headline figures and consider how households and businesses respond to their decisions. Watch to understand what Nobel-winning economic research can teach India about balancing price stability with economic growth.