An unusual commission

.....This brings me to the division of work between Reserve Bank and the finance ministry. Before the 1991 reforms, the situation was simple. Government made policy in so many fields with so many instruments that their coordination could only be done in Delhi. No one ever thought of independence of the central bank. Governor of Reserve Bank was just one cog in the machinery of controls. When the reforms came, the lightning liberalization was done in Delhi. There was no question of Reserve Bank being part of it: the external economic situation was dire, and Reserve Bank was left alone to tackle it with the extremely intrusive instruments it used. Reserve Bank officials were in love with their controls; they liked to think that they were the only patriots at a time when those in Delhi had sold out to the International Monetary Fund and the World Bank........

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