........of all the “strategies” in this game of chicken—chickening being slowing in face of a speeding automobile—one vehicle speeding away and the other slowing is the most frequent solution. A similar game has been played for a while between the finance ministry and the Reserve Bank of India (RBI). It is, of course, rash to try and understand monetary and fiscal policy coordination failures by looking at vehicular aggression on Delhi roads. But the behaviour of India’s fiscal authority—its finance ministry—is not very different from that of speeding drivers. Consider two recent episodes—useful for analysing the repeated play of the chicken game........
No comments:
Post a Comment