But Rajan has a different task in India, he is assuming the Governor of RBI
position on Sept 5, how to stem the the fall in the Indian rupee. Thus far
from the government's position (Chief Economic Advisor) he is been hinting
at the presumed cutbacks in QE leading to capital flight. And India's
current account position is pretty bad. He is between a rock and a hard
place--increasing interest rates could stem the outflows but reduce
domestic demand. There are no real short term solution and tight money
policy won't do. But tight money policy may be a product of the world
economy (aka the US of A).

Cheers, Anthony

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Anthony P. D'Costa, Chair & Professor of Contemporary Indian Studies
 Australia India Institute and School of Social & Political Sciences
University of Melbourne
147-149 Barry Street, Carlton VIC 3053
Ph: +61 3 9035 6161

Visit the Australia India Institute Website
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On Tue, Aug 13, 2013 at 4:07 AM, Jim Devine <[email protected]> wrote:

> raghu <[email protected]> wrote:
> > you are over analyzing
>
> that's my job!
>
> --
> Jim Devine /  "Reality is that which, when you stop believing in it,
> doesn't go away." -- Philip K. Dick
> _______________________________________________
> pen-l mailing list
> [email protected]
> https://lists.csuchico.edu/mailman/listinfo/pen-l
>
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