Why Subbarao should not reduce interest rates as yet - 0 views
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Christopher P on 18 Mar 13This article discusses the options that Reserve Bank of India governor Duvvuri Subbarao faces regarding how to handle the current issue of slow economic growth in the country. The author argues that a lack of aggregate demand is not to blame for the economic issues, so attempting to increase demand through lower interest rates, for example, is not the correct way to go about solving the issue. Instead, he points to fundamental issues in the management of the country's economy that have led to an unstable condition.