‘RBI should continue to manage public debt'

....The learning from the recent global crisis is that those systems where central bank manages government debt are more effective. When fiscal deficit is as high as it is in India, it is not only about debt management in the conventional sense. It has larger implications for liquidity management and monetary policy transmission. The balance of advantage would lie in the RBI continuing to manage public debt until fiscal deficit comes down to very comfortable levels.......

Read............