Reddy, who ran the central bank between 2003 and 2008, and was credited for his contribution to the economy, and, many experts say a flexible monetary policy prevent the accumulation of assets in the country, unlike the United States, to save the economy from the financial crisis.Reddy, exgovernador, also referred to the CNBC TV18 - Venkatesh Latha, and stressed on the eve of the Governor of the Reserve Bank, speaking on India's economy to the global financial crisis.Reddy said complagut with India to address the crisis. He said that banks in India are reasonable. You can fight to break la''bulle «, adding that the strength of domestic demand in India for the start of resilient.Speaking, Subbarao also talked about the measures taken by Reed Business Information to pump liquidity in the reverse order in May, when the crisis.
"When the crisis behind us, we must consider in the management of inflation in the medium term consequences of political action in the economy, and macroeconomic imbalances" Subbarao with the reduction of a wide range of interest is still before the central bank in September 2008 to promote economy.Reddy The believed that the internal factors and provided some protection from misfortune.
That is what led to the growth of domestic demand in India. But he said he did not find evidence of a deficiency in aggregate demand in the Indian economy. Demand is very strong in rural areas, and strong financial sector. In the sense, perhaps, when we were too optimistic before, this time may be too pessimistic «.





