” The two important variables for the policy formulation are projected inflation and the output gap. There is no clear hidebound mathematics that we must give ‘X’ weight to inflation and ‘Y’ weight to growth and form the associated policy. “


” Growth is always there in the MPC’s scheme of things, we don’t lose sight of that, but not at the cost of inflation. “


” What is important is that in a capital-scarce country like India, the real interest rate needs to be positive enough to encourage healthy growth of financial savings, we get into macro difficulties when real rates on financial savings become negative for a length of time. “


” If very fundamental reforms take place, especially when it comes to factors of production like land, labour, then a higher growth rate is possible. “



All 4 Urjit Patel Quotes about Growth in picture


The two important variables for the policy formulation are projected inflation and the output gap. There is no clear hidebound mathematics that we must give
Growth is always there in the MPC


What is important is that in a capital-scarce country like India, the real interest rate needs to be positive enough to encourage healthy growth of financial savings, we get into macro difficulties when real rates on financial savings become negative for a length of time.
If very fundamental reforms take place, especially when it comes to factors of production like land, labour, then a higher growth rate is possible.
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