After the Committee gives its report, we will take further action as may be necessary. Does financial regulation have a role in promoting equity? 47. Having explained the Reserve Bank’s approach to responsible regulation, let me now turn to the final question on my list: does regulation have a role in promoting equity? 48.
The dichotomy between growth and equity is standard stuff of development economics. For a long time, the orthodoxy was that if we took care of growth, equity followed automatically a la a high tide raising all boats. Experience has taught us that reality is more complex. Received wisdom today is that growth is a necessary, although not a sufficient, condition for equity.