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Opinion | A big-bang stimulus needn’t unsettle RBI

India economy Government crisis prevention
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The central bank’s mandate to keep a lid on inflation for stability’s sake is based on sound logic. But in this crisis, we must spur economic growth first and fix other variables later As Indian policymakers knock heads together over how best to stimulate our covid-hit economy, which is in need of a big financial push right now, the Reserve Bank of India (RBI) may well be in a quandary.

Stimulus action, both monetary and fiscal, is necessary to prevent a disastrous drop-off in economic growth. But RBI’s efforts to pump out cash are proving less effective than desired.

If that’s not bad enough, fiscal expansion by the Centre could throw its mandate of keeping a lid on inflation into jeopardy, particularly if it has to print loads of money

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
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