Ep 193: The Fight of the Central Banker
The Seen and the Unseen - hosted by Amit Varma
00:00
Government Borrowing in the Market
At its peak, it was around forty %. It means that when you or i deposited one rupee a bank, forty pisawood would necessarily have to be marked for holdings of government bonds. Now what is this doing? What this kind of repression does is that it forces an increase in the borrowing costs for everyone else. You can't compete with the government on a level playing field for about 40% of the deposit base of the banking system. The government is doing this because it wants to keep running its populous programes.
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