Credit Policy, Interest Rates, Central Banking and All That-A Comment


Credit Policy, Interest Rates, Central Banking and All That Suraj B Gupta II T PAREKH ("Credit Policy, Interest Rates, Central Banking and All That", May 25, 1974, pp 839-41) has come down heavily on the monetary and credit policy prescriptions of academic economists. His critique suggests that he has not invested enough effort to understand the economist's case for his policy recommendations. It is, therefore, appropriate to spell out the case briefly, and then to provide the economist's counter to Parekh's arguments for an easy and cheap credit policy in the present inflationary situation.