Liquidity crisis: where has all the money gone?
In its 73-year history, RBI has never announced a second round of CRR cut even before the first cut takes effect — something it did last week
Reply to comment
Brilliant article that lays down the complex central banking system in India in layman-speak.
After reading this, it's easy to feel like a central bank expert and offer solutions to the impending liquidity crisis.
Let's sell some of those reserve dollars, get the rupee pegged at 42 to a dollar. In addition, we need 'real' reforms: Easing FDI in multiple sectors, full capital-account convertibility, cutting down subsidies in favor of higher infrastructure, education and health spending.
Come on Mr. Prime Minister, you got us the bold Nuclear deal, now it's about time to crank the rusted valves of the economy open.
Sam
http://www.noizemag.com
Sam