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Viral is the same person who said let us not cut rates lest bad loans be evergreened. When convenient focus on inflation, otherwise not. Within inflation choose headline or core similarly.
Monetising directly or through secondary market is a separate issue but it has to be done. https://twitter.com/business/status/1287321409023287296
Monetising directly or through secondary market is a separate issue but it has to be done. https://twitter.com/business/status/1287321409023287296
Nobody in the NY Fed will really care about what this Indian professor at NYU says. So he is having a bit of withdrawal issue from all the limelight.
In India you can polish your CV for global audiences by playing all "independent" of the government irrespective of macro facts:)
In India you can polish your CV for global audiences by playing all "independent" of the government irrespective of macro facts:)
And then to talk about external sector stability! When the reserves are at an all time high, are very comfortable relative to our GDP and debt metrics, when we are running not just a CA surplus but a trade one too temporarily, and when the rupee is not overvalued by any angle! :)
Basically no matter what the situation - you could be in a once a century pandemic recession with excellent conservative macro indicators otherwise - but Viral ji will find a way to warn you about double digit inflation and external sector stability. So much for IIT-B geniuses :)
On a more serious note (IITB folks are my friends!), Viral constantly uses the example of Argentina when he talks about India. There is basically no nuance or Indian monetary history relevant suggestions here. Latin American and Indian macro could not be more different over time.
Tragicomic that Viral always oppose loose monetary policy. For the West he says lower rates can lower inflation and for India the more conventional view prevails. https://voxeu.org/content/creating-zombies-and-disinflation-cul-de-sac-accommodative-monetary-policy
By his own logic, why can’t high real rates reduce supply and increase inflation in India? :)
By his own logic, why can’t high real rates reduce supply and increase inflation in India? :)
