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Ashok Kotwal
On demonetisation
Posted on: 23 Dec 2016
On the evening of 8 November, the Prime Minister announced on national television that Rs. ... read on »
Introduction to e-Symposium: The GDP conundrum
Posted on: 16 Nov 2016
Ever since India’s Central Statistical Organisation came out with the new GDP series with ... read on »
Introduction to e-Symposium: The idea of a universal basic income in the Indian context
Posted on: 26 Sep 2016
The idea of an unconditional basic income given to all citizens by the State, has caught o ... read on »
Introduction to e-Symposium: Ideas for reforms in education policy in India
Posted on: 18 Nov 2015
A New Education Policy is being formulated in India based on a time-bound grassroots consu ... read on »

Tag: interest rates

The tussle between RBI and Ministry of Finance: A different dimension
Gurbachan Singh
Posted on: 18 Aug 2016

The popular belief about the tussle between RBI and the Ministry of Finance is that it is an issue of the trade-off between inflation and economic growth, with the former more focussed on controlling high inflation and the latter emphasising high growth. However, according to Gurbachan Singh, there is a different dimension to the story; the Ministry doesn’t fully appreciate that RBI cannot ignore market forces while making announcements about interest rates.
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How interest rates affect financial decisions of Indian households
Nikhil Gupta
Posted on: 17 Jul 2015

RBI has cut interest rates three times this year so far. While rate cuts are welcomed by the Indian corporate sector, their impact on households is less discussed. This column analyses the relationship between deposit rates and financial decisions of households. It finds that lower rates reduce net financial savings of households, which in turn reduces the resource pool available to the corporate sector.
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Responding to external shocks
Ashima Goyal
Posted on: 30 Apr 2015

Following the global financial crisis of 2007-08, the Indian economy was exposed to various shocks. While the major source of shocks was external, the effects were magnified by certain lapses in domestic policy. This column discusses what policies worked and what did not work to reduce excessive rupee volatility, and how the lessons were applied to prepare for any future shocks.
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Understanding India’s monetary policy
Rajeswari Sengupta , Nirvikar Singh
Posted on: 21 Dec 2012

From the outside looking in, it may seem that India’s central bank is making up its own rules, making it difficult to predict the next movements in the interest rate. This column argues that the central bank is in fact following a rule, you just have to look hard enough.
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Searching for the soul of monetary policy in India
Amartya Lahiri
Posted on: 09 Aug 2012

What is the thinking behind the current policy of the Reserve Bank of India? This column argues that its rules for deciding on India’s interest rates are based on assumptions that hold in developed economies – but not necessarily in India. Indeed, in many cases this leads to precisely the wrong policy decisions.
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