Monday, January 30, 2012

When they don't act in concert …

........In essence, the RBI has put the onus on the government. “Strong signs of fiscal consolidation are critical to create the space for lowering the policy rate,” it said in its third quarter review of monetary policy 2011-12. It had even gone a step further. It advised the government to “exploit the forthcoming Union Budget” to “begin this process in a credible and sustainable way.”......

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