India's former chief economic advisor decodes why central bank measures to stimulate economy fail

A new book titled “Money - A Zero Sum Game” authored by KV Subramanian, India’s former chief economic advisor and KV Vaidyanathan another bright young economist has hit the stands and is about challenge many mistaken theories in monetary economics.

In an interview to CNBC-TV18, KV Subramanian said, “Since the financial crisis we have been observing central banks across the world pull out many unconventional techniques to try and stimulate the economy, increase bank lending and increase growth. So what we have observed is that many of these so called bazookas that central banks across the world have pulled out, have actually turned out to be damp squibs. So when we started thinking about why is it the case that a lot of these measures have not stimulated the economy what we found is that the monetary theory that guides monetary policy itself is flawed. And that is why we wrote this book to point out the flaws in the monetary theory and second to provide a new framework that is practical enough to work.”