Trust deficit: India must generate social capital for people to believe institutions are as good as gold
Shenoy argues that we can manage the dilemma by bringing part of the domestic stock of gold into the market: either the central bank selling some of the gold in its vaults or by introducing a low-friction, tax-free scheme for people to sell their gold to the government, which can then resell it to domestic buyers. Recycling part of India’s locked-away gold, estimated at over 25,000 tonnes, can relieve some pressure on the current account and rupee.
Post Comment