 "Reserve Bank of India (RBI) Governor Shaktikanta Das at the RBI's fourth Bi-monthly monetary policy review meeting of 2019-20, in Mumbai- KAMLESH PEDNEKAR")
With India’s nominal GDP growing at its slowest pace in 17 years, it’s a given that the central bank will cut interest rates again this Thursday.
What’s the point, though? Commercial bank lending rates have turned immune to monetary policy, so much so that a sixth reduction this year in the benchmark price of money will make hardly any difference. The only medicine that can work is quantitative easing, a remedy authorities aren’t even discussing. QE may not cure the patient, but it may well succeed in bringing India’s economy out of a coma.
To see why the quantity of money is
