Friday, November 16, 2012

RBI's Credibility...

 Article; http://economictimes.indiatimes.com/opinion/interviews/the-real-problem-for-india-is-d-subbarao-shankar-sharma/articleshow/17215127.cms   Comment;

Subbarao is doing what he is supposed to do as a central banker. The RBI's credibility depends upon his actions. Price stability and full-employment are the two macro-economic objectives of monetary and fiscal policies. The economy on the employment front is doing fine we need price stability to check inflationary expectation to limit the demand for increase in income and wages economy wide to avoid the cost-push inflation...

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