is the new oil ” fuelling a new industrial revolution. while the transformational potential is similar, there are differences from oil which mean that the nature of that revolution will be very different. unlike oil, data are “ non - rivalrous ”, meaning more than one person can use the same piece of data at once. once in the public domain it also becomes by definition “ non - excludable ”, meaning you can ’ t control who does and doesn ’ t have access. taken together these two features mean publicly accessible data are a public good. 4 in addition datasets can produce additional insights quite distinct from the question they were originally created to answer – they generate positive externalities. and the analytical value produced by combining two datasets can be more than the sum of its parts – there are economies of scope in data. for more on this see mark carney ’ s recent speech at the university of toronto ’ s machine learning and the market for intelligence conference : carney, m ( 2018 ), “ ai and the global economy ”, slides available at https : / / www. bankofengland. co. uk / / media / boe / files / speech / 2018 / ai - and - the - global - economy - mark - carney - slides. pdf. i set out the bank ’ s approach to fintech in a speech at the treasury ’ s international fintech conference in london earlier this year : ramsden, d ( 2018 ), “ open to fintech ”, available at https : / / www. bankofengland. co. uk / - / media / boe / files / speech / 2018 / the - bank - ofengland - open - to - fintech - speech - by - dave - ramsden. pdf indeed “ ai and data ” is one of the four “ grand challenges ” identified in the government ’ s industrial strategy. details available at https : / / www. gov. uk / government / topical - events / the - uks - industrial - strategy. there is a longer discussion on this in hm treasury ( 2018 ), “ the economic value of data ”, available at https : / / www. gov. uk / government / publications / the - economic - value - of - data - discussion - paper all speeches are available online at www. bankofengland. co. uk / publications / pages / speeches / default. aspx but like oil, data must be

reduce lending rates and maintain the flow of credit to the productive sectors. but government borrowing had resulted in firming up of yields, notwithstanding the substantial excess liquidity, militating against the low interest rate regime that we want. the huge government borrowing programme demanded active liquidity management by the reserve bank, and we responded by way of open market operations ( omo ). for the first time we put out the programme for the omo along with the programme for borrowing so as to reduce uncertainty and infuse confidence in the market. this year again, the reserve bank will have to manage the delicate balance between government borrowing and maintaining ample liquidity to meet the demand for private credit as it picks up in the months ahead. we will follow the same open, transparent and consultative process as we did last year. going forward, we need to tread the balance between short term compulsions and medium term sustainability with care and good judgement. in the short term, the countercyclical public spending was necessary ; the important point here is to spend that money quickly, effectively and to create durable assets. on the monetary side, the increased fiscal deficit is going to pose more than a proportionate challenge. creation of high power money in the face of large fiscal deficits, even if there is no direct primary financing, is not costless ; it can sow the seeds of the next inflationary cycle. the challenge for the reserve bank is to maintain a comfortable liquidity situation while at the same time anchoring inflation expectations. the current monetary and fiscal stance is, however, not the steady state. the reserve bank needs to roll back the special monetary accommodation. for this to happen, there are two necessary conditions. first, the government will have to show a firm and credible commitment to fiscal responsibility by fleshing out the road map for fiscal consolidation. second, there will have to be more definite signs of recovery. the reserve bank will maintain an accommodative stance until demand conditions improve and credit flow takes hold, but reversing the expansionary policies is definitely on the agenda on the way forward. having explained the indian context in some detail, let me now return to the global scene. the seventy odd years since the great depression saw a famous rivalry between fiscal and monetary policies for influence. the crisis has shown that both are required, and that indeed both are critical for macroeconomic stabilization. it is unlikely that we will revert to status quo ante once the crisis has passed. on