Rating fiscal and monetary policy issues

Posted online comments:
Jokes apart, the article and recent developments in the Indian Economy and financial sector in particular, call for a more harmonious alignment of relationship among policy makers,
regulators and corporates. Tools like inflation target or fiscal deficit 'target' or efforts to satisfy rating agencies cannot substitute for long term resources management and planning with focus
on Economic Development, employment generation and social security. For this, a happy marriage between fiscal and monetary policies is an essential prerequisite. When Finance Ministry
shows one upmanship and tries to discipline RBI using ownership rights, the normal support which has been available on tap from the central bank may dry up.
M G Warrier

Ashima Goyal responded:
"Thank you. Yes, harmonious alignment within an analytical framework of the 
economy is required. Then policy would be methodical as another comment 
suggests. No regulator or Ministry should try to show one upmanship. The MPC 
also must remember it is following flexible inflation targeting that also gives weight to 
growth."


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