Principled pragmatism

............ A plunging rupee, in turn, engendered concerns of even higher inflation and severely pressuring the fisc, in turn creating concerns about a ratings downgrade. Any such event would have put even more pressure on the rupee. In short, India was in the midst of a vicious self-fulfilling cycle. It was amidst this carnage, that Governor Rajan took office. On his first day, the new Governor laid out several priorities. But, two things stood out. The first was his pledge to restore confidence in the value of a country's money, both external and internal. And the second was to make the central bank even more transparent and predictable. A year later, RBI has made giant strides on both fronts..........

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