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Thoughts & IdeasSaturday, June 13, 2015. As Aspect of Financial Repression in India. Financial repression refers to "policies that result in savers earning returns below the rate of inflation" in order to allow banks to "provide cheap loans to companies and governments, reducing the burden of repayments". The term was introduced in 1973 by Stanford economists Edward S. Shaw and Ronald I. McKinnon in order to "disparage growth-inhibiting policies in emerging markets". As per RBI statistics. Real Rate of Interest. It is t...
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