A pat for institutional coordination - Dr.A.Vasudevan

................It is not possible to speculate as to why Rajan, the RBI governor, chose to speak on the subject at this point in time. The fact that his address was strongly worded was, one suspects, deliberate because addressing issues relating to financial stability cannot be kept outside the jurisdiction of the fiscal and monetary authorities which are directly accountable to Parliament and its committees. Entrusting such a task to a separate single regulatory corporation does not make any sense, even if such a corporation is a part of the public sector, for one important reason. How does one define the nature of its relationship with the government and the central bank and the accountability of such a corporation to the public at large?..................

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