................The FSLRC proposal has certain drawbacks. While the RBI would be accountable for its actions, the majority of the members of the MPC would be non-executives. This goes against the fundamental principles of executive responsibility and accountability. Again, one is all too familiar with how executives and external advisers can be overawed by the presence of a top Finance Ministry official — the Big Brother’s watching syndrome!.............
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
1 comment:
Setting out the purport of policy as ‘alleviating the suffering of the masses and generating a climate of confidence which would boost savings and investments’(see conclusion) and systematically analysing the context in which Dr Raghuram Rajan will be presenting the second monetary policy review of 2014-15, the article doubles up as a background note for RBI and a guide for those who will be talking about expectations and fulfilment, post-announcement of monetary policy.
One only hopes, the views, ‘In this context the autonomy of the Reserve bank of India’s monetary policy function and its accountability comes to the forefront’, ‘…The RBI should then have instrument independence’, ‘…presence of a top Finance Ministry official-the Big Brother’s watching syndrome!’ and ‘Hurrying through fundamental financial legislative changes is clearly not desirable’ coming from the veteran economist who had opportunity to be at the highest level in monetary policy formulation during challenging times, are taken in right spirit, by those in charge of fiscal and monetary policy formulation today.
Post a Comment