On the debate of present recession it may be untold fact that the “Greenspan and Reddy are credited with far more power than they ever had, and with responsibility for outcomes largely beyond their control. Central bankers actually have very limited tools, and hence very limited powers.”
Further Mr Aiyar argues “Central banks can squeeze the whole economy through monetary measures. But can they selectively squeeze only asset bubbles and not desirable activity? No, says Greenspan. I know of no historians who have proved otherwise.”
But it reminds me another article published recently in the Indian Express by Bibek Debroy titled Can you sue God?
Let me ask, Can RBI sue bubbles?
Of course, the RBI or any central bank is not god. But for god unlike RBI or central bank there is no respondent.