'Of Counsel': Arvind Subramanian on how RBI missed 'Draghi moment'

By not reacting faster to the 'twin balance sheet' crisis the RBI missed the opportunity to emulate the governor of the ECB's 'demarche of determination' in dealing with the European debt crisis

When I first took up the CEA’s job, I had the sense — which I articulated publicly two months into my tenure — that the corporate and banking sectors were both deeply stressed after the boom of the noughties. The problem turned out to be even more serious than I had originally understood, and my thinking on the strategy to address it evolved considerably. For example, I was initially in favour of creating a bad bank like many countries had done to solve the TBS  [twin balance sheet] problem. I still believe that a bad bank could have resolved the