Y V Reddy

Nov 25, 2024 | academic.oup.com | Y V Reddy |Partha Pratim Ray |Pinaki Chakraborty

What started as a sub-prime mortgage crisis in the US in 2007 snowballed into global recession soon after. It has turned itself into an economic crisis, if not a sociopolitical one. While the period covering 2014–19 was one of return to the growth trajectory, albeit of the new normal variety, there were various headwinds affecting growth—the US-China trade war, initial confusing signals of Brexit finally culminating in the UK’s exit from the European Union—to name a few.

Sep 27, 2024 | epw.in | Y V Reddy |Pinaki Chakraborty

Understanding the Issue from a Macro Lens Though the central bank balance sheet is a reflection of the interplay of various macroeconomic outcomes, in the Indian context, its relationships with the fisc and foreign exchange operations are significant. The positive impact of Reserve Bank of India surplus on fiscal imbalance is large and has often been used as an instrument to soften the budget constraint at the union level.

Jul 5, 2023 | theindiaforum.in | Y V Reddy

When I was governor of the Reserve Bank of India (RBI), I gave a convocation address to students at the National Institute of Bank Management, Pune. At the conclusion of the talk when questions were invited, I was asked “Sir, how do you become governor, RBI?”  I responded by asking gold medallists in the audience to identify themselves. A few put up their hands.

Jun 21, 2023 | theindiaforum.in | Y V Reddy

In the recent past, discomfort with the dominance of the US dollar in the global financial system has grown, especially after the Global Financial Crisis of 2008. Post the Global Financial Crisis, China embarked on internationalisation of its currency, the renminbi (RMB). The RMB was included in Special Drawing Rights (SDR) basket of the International Monetary Fund (IMF) in 2016. In 2022, the IMF raised the RMB’s weightage to 12.28% from 10.92% in its review of the SDR evaluation.

Mar 24, 2023 | epw.in | Y V Reddy |Pinaki Chakraborty

Lapdogs or Watchdogs? An appropriate balance between fiscal rules and discretionary development spending within the overall borrowing limit of the Fiscal Responsibility and Budget Management Act is critical for macro stability. However, monitoring and compliance of the act at the union and state levels should be left to Parliament and state legislatures.