The editorial “A monetary juggle” (Business Line, December 6) has correctly diagnosed the present-day problem in the light of the monetary policy of the RBI, which gave importance to monetary tightening. The policy has shown that while the monetary supply had fallen seriously, it hadn't achieved the intended goal of reining in inflation. Further, it had the adverse effect of causing a slide in the GDP. The present-day requirement is just the opposite, namely, the release of enough funds to raise the farm and industrial production, which would have proved effective in controlling inflation and boosting the GDP.
T. R. Anandan (HBL)
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