The currency is the centrepiece of a modern economy, the trust and credibility reposed in it being one of the most precious of national assets. It is not to be trifled with by ignorant tyrants. And this is why fiscal and monetary powers are separated in any modern economy, and the autonomy of the central bank is sacrosanct. This separation[Read More…]

One of the least noticed features of the introduction of economic reforms in India 25 years ago was the manner in which addressing a short-term payments crisis on the country’s external accounts became a pretext for the government to introduce – without any debate befitting a supposedly democratic society – sweeping, long-term changes. One need not be a votary of[Read More…]