...... “If Rajan gets one more term you can safely say bye to all investment and therefore high growth in this country … he’s from [University of] Chicago so he is not fit for this country … there they believe that more free market the better but in India market failures take place and you’ve got to correct for that.” “We need to immediately drop interest rates … doesn’t mean that we do it in one go … there can be a road map but businesses must know that cost of capital will come down.”.......
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
1 comment:
Just a couple of comments on the following quotes from Dr Swamy:
“If Rajan gets one more term you can safely say bye to all investment and therefore high growth in this country … he’s from [University of] Chicago so he is not fit for this country … there they believe that more free market the better but in India market failures take place and you’ve got to correct for that.”
“We need to immediately drop interest rates … doesn’t mean that we do it in one go … there can be a road map but businesses must know that cost of capital will come down.”
i) Dr Rajan’s term of 3 years as RBI Governor started only on September 5, 2013 and will end in September 2016 when, going by tradition, he may get an extension of term. So, it is too early to talk about ‘one more term’. Before (University of) Chicago, Dr Rajan had education up to post-graduate level in India. Universities do not determine the policy approach of graduates they produce.
ii) Government need not change RBI Governor in order to change interest rates. RBI will do it(make changes in base rates), if Government makes necessary environment for the purpose.
Post a Comment