Thursday, July 19, 2012

Bite the bullet

.....The government must also use its influence with the Reserve Bank of India in order to introduce some much-needed monetary expansion. The RBI has been excessively cautious — or biased — in its policies. It seems to have given undue weight to the need to control prices, and done very little to take steps to ensure availability of credit. The pronounced slowdown in the economy cries out for a fair bit of monetary expansion......

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