Expecting the Reserve Bank of India (RBI) to pick up the slack created by the government’s policy paralysis, on the one hand, and fiscal profligacy, on the other, is quite naïve. To understand this argument, consider the following scenario. A boat is being rowed on a river by a team of two rowers—one on each side. The boat moves ahead smoothly at a brisk pace when the two rowers act in tandem ..........
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