Thursday, 22 April 2021

The flow of money in FY 2020-21: money supply growth accelerates to 12% ; credit growth decelerates further

 

According to government estimates, GDP in nominal terms fell by about 4% in  FY 20-21, the financial year that just got over. Yet during the same period, money supply growth accelerated to 12% from the previous year's (FY 19-20) 9% .  Is RBI's  lack of control over money supply contributing to rising inflation? Money supply numbers need to be closely watched this financial year. 









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