The Interest Rate Imbroglio-Monetary and Fiscal Dimensions

While it may be debatable whether interest rates in India are free or not, there is no denying that financial liberalisation has taken place on an extensive scale. Equally undeniable seems to he the fact that this liberalisation has been badly managed and is directly responsible for the upward surge in interest rates which occurred in 1995-96 and which continues substantially unabated.