tag:blogger.com,1999:blog-19649274.post6306670127093960427..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: The problems of Indian monetary policyAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-19649274.post-58716442471836402572010-05-07T18:21:26.569+05:302010-05-07T18:21:26.569+05:30Thanks Ajay, It will definitely be helpful to all ...Thanks Ajay, It will definitely be helpful to all of us to get a clear look of what changes are happening recently.<br />this is the nice information shared with us.investment solutionshttp://www.uniconindia.in/noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-18040657052057407892008-07-08T14:10:00.000+05:302008-07-08T14:10:00.000+05:30What about the current account deficit? Both you a...What about the current account deficit? Both you and Patnaik have never really mentioned this potential source of instability, but it makes sense if we try thinking like the RBI.<BR/><BR/>The RBI seem to assume that a lot of the money coming in is "hot", which is backed up by the fact that our reserves are not so much earned as borrowed. They are borrowed as they come predominantly from capital inflows rather than export earnings.<BR/><BR/>An appreciation of the Rs would lead to greater imports across the board, blowing out the deficit and making those borrowed reserves look rather vulnerable. Any shock might then precipitate a nasty run.<BR/><BR/>Your insightful analysis is more often than not based on the assumption of strength, but surely the central bank has to think about the downside risk? Is it paranoid and over-protective? Probably, but given the history, can you blame it?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19649274.post-35956438054912158052008-07-03T22:45:00.000+05:302008-07-03T22:45:00.000+05:30Do you have any insight on why RBI is beholden to ...Do you have any insight on why RBI is beholden to exporters, who make a small portion of the economy - a weak rupee doesn't serve anyone else? Surely it's political but why do they have so much influence? Because they are the loudest as group - the bane that we see in other areas of public life?Chandrahttps://www.blogger.com/profile/04763671243428875888noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-33848999503035004722008-07-03T22:42:00.000+05:302008-07-03T22:42:00.000+05:30This comment has been removed by the author.Chandrahttps://www.blogger.com/profile/04763671243428875888noreply@blogger.com