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Ananthanarayanan Seshan, Economic Consultant, holds degrees of MA in Economics and MSc in Agricultural Economics (US). He joined the economic research department of the Reserve Bank of India in 1956 and retired as its Officer-in-Charge in 1993. Subsequently, he worked as IMF Adviser to National Bank of Kyrgyzstan and Bank of Sierra Leone. His articles on economics, music, dance, politics, travel and sports number more than 250. He was a member of 18 official committees, including those set up by the IMF and UNDP. He is a former Editor of RBI Bulletin and RBI Occasional Papers and Founder-Editor of BSL Bulletin.

The rupee conversion of foreign currency in the accounts of exporters and other categories is unlikely to temper the forex market turmoil. It is time the RBI set up an expert group to suggest measures to restore forex market stability. »
Forex currency assets are equivalent to just six months' imports. To address this problem, the RBI should take further steps to attract NRI deposits and discourage gold imports. »
Inflation has been pegged at 6.5 per cent for this year. Hence, inflation expectations may go out of hand. »
The RBI has to opt for the right instruments to reconcile the objectives of growth and price stability. »
The Government could have deployed wealth tax and dividend tax to reduce the fiscal deficit. »
The Budget is expected to incorporate the features of the Direct Taxes Code. »
The co-existence of ‘liquidity shortage' and a dip in non-food credit growth has not been addressed. In fact, risk aversion by banks, rather than liquidity stress per se, has impacted credit offtake. A CRR cut may not help. »
The RBI's objective to decelerate aggregate demand to enable the soft landing of the economy has been achieved. It can now afford to loosen up its policy, once again taking baby steps. »
Recently, the Reserve Bank (RBI) announced that banks were free to determine their interest rates under Non-Resident (External) Rupee Deposit Account and Non-Resident Ordinary Account. Since the e... »
The central bank has done well to keep the status quo rather than succumb to the pressure to reduce rates. The declining trend in inflation may turn out to be a false dawn, calling for a return to tightening measures. »
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