THE CURIOUS CASE OF RAGHURAM RAJAN
........However, the “man of the moment” has his plate quite full and absolutely scrambled. Though his intention to further open up the financial sector is in consonance with his academic and professional credentials, he also now has to reconcile with the existing focus on inflation in the central bank. Last three Governors of the RBI (D.Subbarao, Y.V.Reddy and Bimal Jalan) were known to be cautious in their approach to open up, but whether Rajan would break the tradition (true to his background) towards a more liberalised monetary sector or not – remains a question of immense interest in near future. Meanwhile, his posturing is generating fair amount of curiosity in the minds of everybody involved and interested in the monetary affairs of the country.
Read............
1 comment:
Monetary easing and encouraging consumption to pep up the credit markets do not seem to gel well with the current risk environment. Further, aping the west in a conservative and cautious financial market is likely to put the risk appetite in wrong direction. The realization may come late and remedies may be costlier. The author is right in raising doubts about Dr Rajan's approach at the current juncture.
Post a Comment