Here are the monetary/credit measures announced today by RBI Gov @DasShaktikanta
As I have said before, India has deliberately opted by a step-by-step feedback loop based approach that is different from the big-bang approach of some other countries 1/n
rbidocs.rbi.org.in/rdocs/Content/…
As I have said before, India has deliberately opted by a step-by-step feedback loop based approach that is different from the big-bang approach of some other countries 1/n
rbidocs.rbi.org.in/rdocs/Content/…
The basic thinking is that we are dealing with an uncertain evolving situation. So we will do two things: (1) cushion for the worst case (2) respond according to new information. Same for health - first do a lockdown, then identify problem areas, then systematically open up. 2/n
Importantly, the G20 Global Action endorsed by FMs & central bank govs of all major economies, has also taken a feedback loop based evolutionary approach for the global response. This includes countries that had opted so far to take a "big bang" for the national response. 3/n
The step-by-step approach does not mean government/RBI does not recognize the seriousness of the situation or is unwilling to do big things. Remember, we will need some ammunition for the post-Covid reconstruction - hopefully not far away if we manage the health situation 4/n
An important consideration for the post-Covid reconstruction is that we will probably not be returning to the pre-Covid world. The socio-economic, geo-political, technological, supply chain, global governance architecture will be different. 5/n
India should engage actively in creating this new world. This cannot be done defensively. We need to take risks - not just business risks - more broadly in terms of how we respond as a people to the emerging opportunities (and problems) of this new landscape 6/n
