Who will step into Subbarao's shoes?
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“It will be hard to fill Subbarao’s shoes. Despite being under pressure from the industry and the government to prune interest rates, Subbarao chose not to bow down and that is the dividend that we are getting in terms of stabilizing inflation rate which was at 5.96 per cent in March, well near the comfort zone of the Reserve Bank that could prompt the central bank to effect another possible rate cut in May,” a Finance Ministry official said requesting anonymity..........
2 comments:
Recent developments which saw easing out of a Deputy Governor (Subir Gokarn) for no fault of his and compulsions to retain another Deputy Governor for another year calls for a review of the selection and placement procedure at that level. Perhaps the pool from which selection is made and the age profile (raising the upper age limit by 3 to 5 years from the present ‘normal’ at 62 years) need a review. In the circumstances, it would be most appropriate to extend the tenure of Governor Dr Subbarao who is to retire within months, initially by another year at this juncture. This would be a pragmatic political approach also, if one weighs the uncertainties in the horizon.
Formulating and implementing succession plans for top government/public sector jobs with professionalism and efficiency in a graceful manner is imperative for allowing the institutions to function with reasonable functional autonomy within the legislative mandates.
We are familiar with Raghuram Rajan, the chief economic advisor to Finance Minister P Chidambaram , his exposure to international economic problems, his academic credentials and track record which makes him eminently suitable to be GOV.What is the track record of Arvind Mayaram, Secretary, Department of Economic Affairs (DEA). All his life stayed in Rajasthan working in districts, administrative divisions etc.For a short tenure he came to MoF.How does he compare himself with GOVs of Central Banks of advanced countries.Put under the lens his expertise in Monetary Policy, Risk Management,Bank Supervisory expertise, role in implementing Basel Committee recommendations on the website and let the experts choose the next GOV.
Why can't any RBI Dy GOV can become a GOV who has deep Central Banking expertise?Why only IAS types?What genetical complex RBI community is having?
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