Arvind Subramanian: The Credit Crunch Conundrum (Business Standard)

The Business Standard publishes CGD senior fellow Arvind Subramanian's column on the financial crisis.

From the article:

"Cutting interest rates is not obviously positive for credit expansion.

This newspaper posed the question well: how can there be a credit crunch if credit continues to grow at a torrid 30 per cent? Yet, it is undeniable that call rates have risen sharply to double-digit levels. What is going on? And how should monetary policy respond?"

Read the article