The annual report of the Reserve Bank of India for financial year 2011-12 was recently published and is available in the public domain for analysis. Central Bank balance sheets have been under enormous scrutiny since the commencement of the global slow-down in 2008, ever since massive accommodation by governments meant the transfer of systemic risk from the financial sector to the government sector. This is not surprising given that data available in the annual reports reflect in varying degrees, the extent of monetary expansion undertaken, the severity of domestic liquidity constraints and scale of central bank accommodation provided to the government sector.
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About Rainmaker Economics
An attempt by a Professor of Finance to reconcile Dickens with Friedman.
As Dickens once said, "The poverty of our century is unlike that of any other. It is not, as poverty was before, the result of natural scarcity, but of a set of priorities imposed upon the rest of the world by the rich. Consequently, the modern poor are not pitied but written off as trash. The twentieth-century consumer economy has produced the first culture for which a beggar is a reminder of nothing." And as Friedman famously remarked "is there some society you know of that doesn't run on greed? You think Russia doesn't run on greed? You think China doesn't run on greed? The problem of social organization is how to set up an arrangement under which greed will do the least harm, capitalism is that kind of a system.''