Thursday, October 25, 2012

Lack of coordination

..........This also explains why blaming RBI for failing to rein in inflation, despite several rate cuts, is unfair. Instead, but for RBI’s firm determination, inflation would have flared up further. Any insistence on the part of the government to coordinate with RBI to promote growth by liberalising interest rates will be counterproductive, unless the former cooperates to check inflation and takes bold steps to enhance growth by other means.

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