Category: monetary policy
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Rip-Off Bills Are Not Just a Household Problem — They Are a Macro-Economic Time Bomb
Rip-off bills are no longer just a household inconvenience; they are becoming a macro-economic time bomb. Advanced economies like the UK have long depended on strong consumer spending to fuel growth, with household consumption contributing nearly 60–70% of GDP. When consumers face persistent price pressure in essential sectors such as…
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Mature Economies at the Edge: Monetary Ceilings and Industrial Decline
The End of Easy Money For over a decade following the 2008 Global Financial Crisis, advanced economies relied heavily on ultra-loose monetary policies — near-zero interest rates, quantitative easing, and liquidity injections. These measures prevented economic collapse but also eroded the traditional tools of central banks.By the early 2020s, the…
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Review of RBI’s Monetary Policy (October 1, 2025)
1. A Timid Pause Amid Urgency The unchanged repo rate at 5.5% and a neutral stance reflect excessive caution at a time when essential. Having already delivered 100 bps cuts since February, the RBI has chosen passivity rather than leadership. The policy betrays an overreliance on “wait and watch” when…
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Beyond Endurance: Why India Must Fast-Track Reforms Amid Global Trade Shocks
India’s recent economic performance—marked by a strong 7.8% GDP growth last quarter—has shown resilience in the face of global headwinds. Yet, as international trade pressures mount, particularly with the United States imposing steep tariffs, endurance alone will not be enough. To sustain momentum, India must move decisively on structural reforms,…
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Is India Consuming Too Much and Investing Too Little? A Deeper Look into the Growth Puzzle
India’s growth narrative has always captured global attention. With a population of over 1.4 billion and a demographic dividend that is the envy of many nations, India is poised for long-term economic potential. However, a closer look at the structure of India’s GDP reveals a paradox that economists and policymakers…
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India’s Inflation Equation: Policy Coordination, Expectations, and Lessons from the West
Inflation remains one of the most pressing economic challenges for India. With an economy that is growing rapidly but still vulnerable to price shocks, managing inflation effectively requires a balance between monetary policy, fiscal discipline, and external factors. This article critically examines India’s inflation equation, the role of inflationary expectations,…
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India’s Inflation Equation: Policy Coordination, Expectations, and Lessons from the West
Inflation remains one of the most pressing economic challenges for India. With an economy that is growing rapidly but still vulnerable to price shocks, managing inflation effectively requires a balance between monetary policy, fiscal discipline, and external factors. This article critically examines India’s inflation equation, the role of inflationary expectations,…
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Structural Reforms and Technological Disruptions
In an increasingly uncertain global economic landscape, resilience has become a critical component of macroeconomic stability. Resilience operates at three key levels: the use of force (geopolitical and security resilience), future readiness (economic adaptability and technological innovation), and resilience as a skill (institutional and workforce adaptability). The world today faces…
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Reviving India’s Investment Climate
India’s economic growth story is deeply intertwined with its ability to attract investments, both domestic and foreign. However, recent trends indicate a worrying decline in domestic private investment, which directly impacts Foreign Direct Investment (FDI). This blog critically examines the interplay between sluggish demand, domestic and foreign investments, and the…
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RBI Financial Stability Report 2024
The Reserve Bank of India (RBI) has released its latest Financial Stability Report (FSR), offering valuable insights into the health and resilience of India’s financial sector. As the year draws to a close, the report sheds light on emerging trends, potential risks, and the overall robustness of the banking and…
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