Mint Explainer: The deep links between RBI balance sheet and the economy
A central bank's balance sheet is not merely a statement of accounts; it is central to the money supply process. At the cost of over-simplification, a simple relation links broad money (M3), i.e. currency with the public, demand and time deposits with banks, and other deposits with the RBI, to reserve money
A central bank's balance sheet is not merely a statement of accounts; it is central to the money supply process. At the cost of over-simplification, a simple relation links broad money (M3), i.e. currency with the public, demand and time deposits with banks, and other deposits with the RBI, to reserve money