It may appear cynical to say the independence of the RBI is a mere fig leaf which is used conveniently to the advantage of the government. While the government nominally claims that the RBI has total independence, in practice the government reins in the RBI. The government expects the RBI to be concerned about the growth of the economy and restrains the RBI from taking corrective measures to prevent unsustainable growth; once unsustainable growth results in inflation, it becomes the primary task of the RBI to control inflation and it is expected to do so without adversely affecting growth -- an impossible juggler's act.
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