ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

A+| A| A-

RBI Has Far More Autonomy Than Scrutiny

Selective Memoirs

Who Moved My Interest Rate? Leading the Reserve Bank of India through Five Turbulent Years by Duvvuri Subbarao,Gurgaon: Penguin Viking, 2016; pp 323,₹699.

It is unfortunate how so few Finance Ministers and other policy makers understand, let alone accept, the monetarist paradox. If there is one enduring idea from Friedman that central bankers in emerging economies such as China and India would be well advised to heed, it is that almost every interest rate cut leads, over time, to a higher interest rate. (Moorthy 2007)

The perennial discussions about and clamour for more Reserve Bank of India (RBI) autonomy have become more frequent and heated. Further, they have spread far and wide among the general public due to the controversy about Governor Raghuram Rajan’s extension and culmi­nating in the search for his successor. Against this backdrop, former RBI Governor Duvvuri Subbarao’s plea for more RBI auto­nomy in his recent book calls for a careful and detailed scrutiny and assessment.

Dear reader,

To continue reading, become a subscriber.

Explore our attractive subscription offers.

Click here

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top