Monday, September 16, 2013

Head aches for RBI Governor

Why only Inflation? All problems that the economy face today add to the head ache of the governor and there is no magic wand to set right things. He has to build up confidence in the economy through improved rupee value, savings of the masses in financial instruments particularly banks savings instruments, discourage build up of assets of gold and real estate by eliminating black money, increased health of banks balance sheets by being very strict with bad borrowers and finally through better rapport with the Government by getting some favourable fiscal incentives towards savings, removing the supply side constraints for containing the defiant inflation and inflation expectations. He can do it and he has to do it to save the economy from further crisis. DrT.V..Gopalakrishnan (This comment is in response to a write up inflation adds to head aches of the new Governor that appeared in TOI dated 16/9/13) 

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