For the poor quintiles the access to quality services can be improved if the Government provides scholarships, stipends, per capita grants and financial assistance to the non-governmental or quasi-governmental institutions in a transparent and targeted manner. The Government is already providing several incentives to these providers in the context of its Public-Private partnership program which needs further strengthening in operational terms.
Second, if the bubble is truly malign, we should not hesitate to use monetary policy as well. Third, in using macro-prudential measures we should be aware of their long-run consequence of distortion in resource allocation. However, in practice, I have strong reservations over the effectiveness of some macroprudential measures in a malign bubble. Take the loan to value (LTV) ratio as an example.