Saturday, November 16, 2013

Volatile living: Bold monetary experiments of Raghuram Rajan's RBI

The bold monetary experiment that the Indian and Chinese central banks engaged in this year might one day be hailed as a success. So far, the result has been unprecedented market volatility and little else. Both central banks targeted interbank rates to control the supply of money, aiming for a more surgical monetary tool than orthodox bank reserves or policy interest rates..........

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