Tuesday, December 10, 2013

Fixing monetary policy - Charan Singh

...More importantly, psychologically, it is more frustrating to be unemployed rather than facing inflation. The present tight monetary policy has not been successful in arresting the price level because it is based on a wrong premise—rising food prices—which cannot be tamed by rising interest rates. Rather it shall be helpful to lower the interest rates and provide positive impulses through forward guidance and ushering certainty in policy path to revive growth and investment...............

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