How demonetisation impacted the Indian economy
Rajrishi Singhal, Aug 30 2018
Reserve Bank of India’s (RBI’s) confirmation that most demonetised notes were returned to the central bank finally confirms the long-held suspicion that the unilateral executive decision to ban specified notes not only failed in its stated objective of flushing out hidden wealth but also ended up causing some damage to the economy. The RBI annual report for 2017-18, released on Wednesday, shows that almost all the banned banknotes, or 99.3% of the notes withdrawn, were returned to the central bank. More…
India’s Growth Indicators Show Animal Spirits Very Much Alive
Anirban Nag, August 28, 2018
India’s economy is shrugging off global trade wars, relying on domestic consumption to stay on course to becoming the fastest-growing major economy this year. More…
Monetary Policy in India: Does the RBI Have a Framework?
Partha Sen, Aug 23, 2018
There has been mounting criticism that the RBI is not doing enough to promote growth by lowering interest rates. In addition, India’s trade deficit has reached levels not seen for some time, and the rupee is in a free fall – its depreciation this year against the US dollar had exceeded those of other Asian currencies (before the Turkish crisis).
So, is the RBI conducting monetary policy in an optimal fashion? If not, what is missing? To answer these questions, one has to organise one’s thoughts keeping two things in mind. More…