My View on "D. Subbarao: The govt insider who turned rebel":
There are divergent views on the monetary policy stance Dr Subbarao had taken in different situations and his ‘change of allegiance’ once he shifted from North Block to Mint Street. But, those who have closely observed the happenings in the financial sector and in RBI during the last 5 years will not question the rationality of the steps taken by him to adhere to the advice given by Dr Manmohan Singh before he took over as Governor. As he himself mentioned last week, with the advantage of hindsight, changes in modalities like reducing the frequency of policy announcements may be made. But, it will be difficult to contest the defence he put forth for a strong and autonomous central bank (within legislative mandate) or to move away from the financial inclusion initiatives he has started. His success has to be seen in the background of the circumstances which gave the outside world a feeling that monetary policy did not get the fiscal policy support in adequate measure for political and external reasons. His successor is aware of the situation and the first task before him will be to bring the North Block on the same page.
- M.G.Warrier
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