I liked the analogies used. A paradigm of higher productivity should enable RBI to lower cost of borrowing to achieve even higher and sustainable growth without fueling inflation. Also, there are some studies that find central bank's obsession with independence to increase inequality. On the flipside, the impact of negative real savings rate can hamper long run growth prospects. Further, steady positive real savings rates can enable financial intermediation. I think in this context, a targeted policy easing (as China does) could be an option for India.
I liked the analogies used. A paradigm of higher productivity should enable RBI to lower cost of borrowing to achieve even higher and sustainable growth without fueling inflation. Also, there are some studies that find central bank's obsession with independence to increase inequality. On the flipside, the impact of negative real savings rate can hamper long run growth prospects. Further, steady positive real savings rates can enable financial intermediation. I think in this context, a targeted policy easing (as China does) could be an option for India.