‘The economy has begun to turn around’

.....It is food inflation that has not come down. A lot of people say that food inflation is not something that can be tackled by keeping tight monetary policy. My own judgment is that the economy has begun to turn around and we have unutilised growth capacity. The RBI’s earlier view was that if you don’t have fiscal space please don’t rely on monetary policy. Now the dispute is only speed and pace. Some people think there should be more monetary loosening, while others think it should be a more careful process. In my view it’s not the monetary side that is the most crucial........

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