sábado, 31 de agosto de 2019

Beyond economic band-aid | The Indian Express

Beyond economic band-aid | The Indian Express



Beyond economic band-aid

Stimulative impact of RBI transfer is lower than presumed. Sustained reforms remain key

rbi, rbi fundtransfer, rbi fund transfer to centre, gdp, indian economy, macroeconomy, indian express
Even as there has been a slew of comments around the RBI’s surplus-capital transfer to the government, confusion reigns on its macroeconomic implications.


Even as there has been a slew of comments around the RBI’s surplus-capital transfer to the government, confusion reigns on its macroeconomic implications. There’s a perception that a fresh stimulus of the amount transferred (Rs 1.76 lakh crore) is now available. Consequently, market participants are queuing up to suggest where this fresh spending should be deployed. Indeed, a stimulus of this quantum (almost 1 per cent of GDP) invested in public infrastructure projects — that have large multiplier effects — should be enough to arrest the current slowdown, right?

No hay comentarios: