.......Loss of monetary control and a weak fiscal resolution would imply a resurgence of inflation. Forty years ago, the then Governor, S. Jagannathan, speaking at the Bankers' Club in Chennai, said “while planning their resource position, banks should not count upon recourse to the Reserve Bank as an easily available resource”. Today, bank accommodation from the RBI has become a chronic addiction. If not treated early, this would eventually require a cold turkey approach, which would be disruptive to the financial system.
No comments:
Post a Comment