High Policy rates sans supporting fiscal policy cannot tame inflation

Monetary policy that hunts with the advanced economy “hounds”—via symmetric upward adjustments in policy interest rates over the last year—and simultaneously runs with developing country “hares”—by desperately trying to revive stalling growth—has contradictions just waiting to come home to roost. That growth in India is stalling is clear from the RBI Monetary statement on 6 […]

India: Taming inflation without hurting growth

Economic decision makers face a problem. They make tradeoffs between alternative solutions but very few are win-win. Most involve optimizing for economic harm against benefits. Sadly, quantifying tradeoffs remains captive to data and computing constraints in these pre-quantum computing times. The fallback is to rely on gut instincts, ideology, or copycat solutions- none of which […]

Storm in India’s monetary tea cup

The Reserve Bank of India-led Monetary Policy Committee (MPC) brewed a storm in a teacup by continuing its accommodative monetary policy stance—retaining the Repo rate (the cost of borrowing from the RBI) at 4 percent and the Reverse Repo (the cost of depositing funds with the RBI) at 3.35 percent. The MPC is a device, initiated in […]

	712sdf356 on Trump’s DOGE &…
	Sanjeev Ahluwalia on Putting rural India first
	Bhanupriya on Putting rural India first
	Sanjeev Ahluwalia on Aspirations must be backed by…
	Sanjeev Ahluwalia on Musk storms the tweeters nest…