RBI policy: Here is why the central bank needs to stop raising rates

RBI, following conventional wisdom, is guilty of wanting to show that it's doing something to bring down inflation while perhaps helping worsen it by slowing down efforts to increase capacity, output

What should be the context in which the fiscal and monetary policies 2023-24 are framed? I mean, the overall global context, not just the forthcoming General Election of April-May 2024?

Should the fiscal policy be expansionary? Should interest rates be lowered? Let’s try and figure this out.

The governor of the Reserve Bank of India (RBI) has rightly cautioned Indian banks from lending to the world and especially to the West, where interest rates are rising, adversely affecting the ability of borrowers to repay the loans. He couched his warning by talking about global spillovers.

More recently, Nouriel Roubini, an