Instead of RBI holding capital, an MoU could be signed that would require the govt to pay the central bank in case of any risk.
RBI’s last year circular making bankruptcy proceedings a must brought focus on the need for checks and balances when unelected officials write a law.
Experts say RBI's 25 basis points cut in lending rate is expansionary given as it comes shortly after an expansionary budget.
It is a relief to see that the government did not run the risk of running a larger borrowing programme.
If no effort is made to consider how a minimum income guarantee is financed, then the expenditure would lead to cuts in public investment & higher borrowing.
With no upswing in output growth and low consumer price inflation, the stage is set for cutting interest rates.
Oxfam considers it “obscene” that the poor now borrow more, and have seen an increase in their liabilities.
The slowdown in credit to small businesses is yet another example of central planning gone wrong.
We must look North—and see the rise of the renminbi.
Every government would benefit from a lower level of debt.
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