Raghuram Rajan (in a webinar today): Young people without jobs can be diverted to be this and that for a little while. But they are going to come to the streets if we don’t create jobs. We can use social media, fake news to divert things. But eventually, it is going to fail
On Atmanirbhar Bharat: I don’t know what it is... I want to believe it is the variation of the same (Make In India) theme... (But) if the focus is on import substitution by erecting tariffs then I think it is a direction we have tried before and failed.
On Rating agencies: We can’t be wedded to rating.. I’m not someone who dismisses them.. Part of the prob is we are very good at overspending money in good times...What's the worst if rating agencies downgrade us.. Our prob is money coming in, not money going out..
On 15 fin comm: Have been talking abt some kind of debt target. Let’s have a realistic target but have a path to bring down the debt. Bcoz we are gonna emerge from this, even with the most optimistic projection, 90% of GDP as debt. This is a time to expand the resource envelope
On post-covid policy: If the small shop owner cannot open his shop anymore, it is going to affect the economy... find out how bad the situation really is, if there is damage you have to repair it now. That damage will take out that part of the economy and affect the supply
(Cont.) This is not the time for the free cheque. But targeted spending can repay a lot. Think of this as an investment. There is a seperate call for stimulus. But repair or relief is also very imp. Ways you can give relief: restructure, enhance credit
(Cont.) Debt recovery tribunals, bank recovery bodies, get them going and make them work harder. In the meantime also think about the financial sector, bcoz we need more credit. Make sure the banks are adequately capitalised so that they can provide credit
I have just paraphrased only a few comments. Here's the full link: facebook.com/SPJIMR/videos/…
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