Business Standard

You make the tea or the tea makes you?

Move over Reserve Bank of India. It's the commercial banks, which are creating money and moving the economy

Reserve Bank of India, RBI

Tamal Bandyopadhyay
“There have been three great inventions since the beginning of time: Fire, the wheel and central banking,” American vaudeville performer Will Rogers once said.

Two engineers-turned-economists — Krishnamurthy Vaidyanathan and Krishnamurthy Subramanian — have dared to replace central banking with banking in Money: A Zero-Sum Game. The book also has a sub-title “A Novel Framework of Money: Have Nobel Economists Got it Wrong?”

Of the two, Subramanian, the youngest chief economic adviser, government of India (2018-21), is now India’s executive director at the International Monetary Fund.

A central bank is the term used to describe the authority responsible for policies
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Mar 26 2023 | 5:16 PM IST

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