In the run-up to the Reserve Bank of India's (RBI) Mid-Quarter Review of Monetary Policy on September 17, 2012 there would be frenzied discussion as to what the RBI ought to do. Much of the jargon would be totally alien to the Common Person but as the policy changes impinge on the Common Person shorn of the jargon what is needed is a Child's Guide to Monetary Policy…….
………If the duty of the RBI is to crush inflation, the need of the hour is a tighter monetary policy. The RBI has provided yeoman service over the years and it cannot be expected to carry as passengers the non- functioning wings of overall policy……..
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1 comment:
It was a great idea to put together some simple features of monetary policy and explain them in more simple terms. I am sure some bankers (and central bankers) reading this will start speaking more sense in the coming days. Looking forward to read in this column or elsewhere, some suggestions for GOI and RBI to factor in some ingredients in Fiscal Policy and Monetary policies which will help flush out secret reserves of the millionaires and billionaires, which, if brought to mainstream, will make the economy grow at a much faster pace and at the same time make the lives of both the rich and poor more secure and worth living.
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