RBI's Reddy on globalisation and monetary policy

In the speech 'Globalisation and monetary policy - some emerging issues' given on 19 March Y V Reddy of the RBI said economists have for long recognised the strong complementarities between the real and the financial sectors.

"Financial development contributes to growth in either a supply-leading or a demand-following sequence; that is, either the financial sector development creates the conditions for growth or the growth generates demand for the financial services. It is important to recognise

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