World trade projected to shrink by 9% in 2009: Subbarao
April 7th, 2009
The Governor of the Reserve Bank of India for the first time made his views known on monetisation of public debt. Faced with the challenge of the Rs 3 trillion government borrowing programme, the governor today said the central bank would look at both short term and long term consequences before agreeing to buy government debt.
D Subbarao, Governor, RBI said, “I can print a lot of money but that’s not the issue; these are not benign solutions.”
Subbarao voiced his concern over monetization for the first time. The governor said printing of new money into the system should be done keeping both the long term and short term consequences in mind.