Liquidity conditions have been tightening, as reflected in the hardening of yields in the government securities market due to uncertainties about the government's borrowing programme for the second half of 2013-14, it said.
#RBI#liquidity#Money supply#OMO#Bond purchases
The nature of banking usually ends up increasing money supply, but the devil here is deficit financing of the government by the Reserve Bank. Unless the Reserve Bank can say no to the government, it will be difficult to control money supply. #Inflation#RBI#Duvvuri Subbarao#Chart View#Money supply
The monetary aggregates are alternative measures of the money supply by degree of liquidity. Changes in the monetary aggregates indicate the thrust of monetary policy as well as the outlook for economic activity and inflationary pressures. Money supp...