000			01084pab a2200157 454500
008			180718b2001 xxu||||| |||| 00| 0 eng d
100			_aD'Souza, Errol
245			_aThe changing monetary environment
260			_c2001
300			_ap.299-301
362			_a27 Jan
520			_aIn the recent past the RBI has been using open market operations to sterilize the inflows of foreign capital so as to contain domestic monetary expansion. Due to a rise in the income velocity of base money this has created an incentive for the government to resort more to market borrowings from banks which has raised real interest rates and which exerts a depressing impact on the growth of economic activity along with creating pressures for the inflation rate to increase. The changed environment calls for a reduction in government expenditures which, whilst reducing interest rates and enhancing the level of economic activity, will also help nudge the economy to a lower inflation level. - Reproduced
650			_aMonetary policy
773			_aEconomic and Political Weekly
909			_a47694
999			_c47694 _d47694