Leave the RBI alone | Business Line

Leave the RBI alone | Business Line

Online comments posted on March 13, 2014:



The crisp and to the point arguments put forth in favour of the need for consistency in approach to fiscal and monetary policies on the part of both GOI and RBI are more likely to get sunk into the ocean of issues being raised and debated in the context of Elections, 2014. Last decade has seen a marked deterioration in the relationship between Finance Ministry and the central bank of the country.
It is amusing to see the ministry forcefully arguing for a divorce from RBI to which it is legally married and simultaneously pleading a ‘living together’ relationship, post-divorce. Yes, the reference is to the commissioned report of the Financial Sector Legislative Reforms Commission and the defence about follow up action being taken, even before legislative processes begin.
The sanctity of the relationship between the monetary and fiscal policies institutionalised by RBI Act should be respected and any change should be after due deliberations in the Parliament and between RBI and GOI. Inflation and Fiscal Deficits are symptoms and cannot be treated by prescribing targets, sans policy support.

M G Warrier, Thiruvananthapuram

The Hindu Business Line, March 14, 2014
Letters to the editor
Lucid argument
With reference to “Leave the RBI alone” by Dhananjay Sinha (March 13), there cannot be two opinions about the fact that the government and the RBI have to play their roles independently and take appropriate decisions with regard to fiscal management and policy rates, respectively. Unbridled fiscal profligacy is definitely not in the interests of the country. Nor is the attempt to influence the decisions of the RBI. The writer has succinctly and lucidly brought out the issues.
V Venugopal
Chennai
The crisp arguments put forth in favour of the need for consistency in approaching fiscal and monetary policies by the government and the RBI are more likely to sink in the ocean of issues being raised and debated in the context of Elections 2014.
The last decade has seen a marked deterioration in the relationship between the Finance Ministry and the central bank. It is amusing to see the Ministry forcefully pleading for a divorce from the RBI to which it is legally married and simultaneously defending a ‘living together’ relationship, post-divorce. Yes, the reference is to the commissioned report of the financial sector legislative reforms commission and the public defence of follow-up action being taken, even before legislative processes begin.
The sanctity of the relationship between the monetary and fiscal policies institutionalised by the RBI Act should be respected and any change should be made only after due deliberations in Parliament and between the RBI and the government.
Rising inflation and fiscal deficits are symptoms of deeper ailments and cannot be treated by prescribing targets, without policy support.
MG Warrier
Thiruvananthapuram



Comments

Post a Comment

Popular posts from this blog

NAVAGRAHA STOTRAM

NAVAGRAHA STOTRAM* According to astrology, the positions of the nine planets in the twelve constellations of the zodiac and their movements are considered to be quite significant. The nine planets ‘Navagraha’ affect every aspect of human life. They play an important role in the activities, physical and mental health and life of any individual. The unfavorable positioning of any of these planets can be the cause of problems, bad health, and stagnation for many people. However, there is a solution to avoid the ill effects of the position and movement of the ‘Navagraha’ in our lives. Navagraha mantras (or stotram) are simple mantras which work as powerful healing tools to reduce the negative effects of any of the nine planets. These mantras are Hindu holy hymn addressing the nine planets. Benefits Of Navagraha Stotram And The Way to Practice The Navagraha Stotram is written b y Rishi Vyasa and is considered to be the peace mantra for the nine planets. They are powerful m
Read more

The King of Ragas: Sankarabharanam

                       The King of Ragas                      --------------------------     Long ago  serpents were put to lot of hardships.They  were afraid of other animals. They had to seek refuge in the hermitage of sage Saraba.The sage was a true devotee of Lord Shiva.He used to pray Shiva with melodious songs. As he sang a particular raga the snakes were much inspired and they began to dance,. Slowly the serpents became friendly with the sage. They brought water in their mouths for the pooja.They secreted  a special fluid in which the flowers got stuck to their bodies.The sage was much astonished by the service of the snakes.As the sarpas became very close to the sage ,they requested him to help having Darsan of Lord Siva. As requested by the sage Shiva appeared in the form of  a  Kapalika and stayed in the ashram.The music and dance of the snakes continued. The snakes rendered service to the kapalika as they considered him  a Shiva bhakta.Shiva was much pleased with t
Read more

THE SUNSET OF THE CENTURY

*SUNSET OF THE CENTURY: Rabindranath Tagore THE LAST SUN OF THE CENTURY SETS AMIDST THE BLOOD-RED COLOURS OF THE WEST AND THE WHIRLWIND OF HATRED. THE NAKED PASSION OF SELF-LOVE OF NATIONS IN ITS DRUNKEN DELIRIUM OF GREED IS DANCING TO THE CLASH OF STEEL AND THE HOWLING VERSES OF VENGEANCE. THE HUNGRY SELF OF THE NATION SHALL BURST IN A VIOLENCE OF FURY FROM ITS OWNSHAMELESS FEEDING FOR IT HAS MADE THE WORLDITS FOOD, AND LICKING IT, CRUNCHING IT AND SWALLOWING IT IN BIG MORSELS, IT SWELLS AND SWELLS TILL IN THE MIDST OF ITS UNHOLY FEAST DESCENDS THE SUDDEN HEAVEN PIERCING ITS HEART OF GROSSNESS…   *Note: “The Sunset of the Century”, translated by the poet, from Naivedya; The English Writings of   Rabindranathtagore, Volume II,Delhi 1996, page 466. Quoted in his article ‘Critiquing nationalism’ by K Satchidanandan (Frontline, November 14, 2014). The article takes you to a much broader spectrum. HAPPY READING(READ MORE STAN
Read more