VITALINFO: Music, Yes, but High-Pitched

VITALINFO: Music, Yes, but High-Pitched: My View on   " A Modi Victory may Not be Music to Rajan’s Ears ":  This refers to ‘A Modi Victory may Not be Music to Rajan’s...

This serves as a high pitch background music, much needed during the interregnum between close of poll and announcement of final results on May 16. The welcome change of track from ‘Dr Rajan losing his job post-May 16’ to ‘the problems the RBI Governor will face on a Modi win’ will go unnoticed. Who cares for the rating among economists Dr Raghuram Rajan had before joining RBI?(For those who have forgotten: He was considered one among the 10 top economists of the world). Let us watch how he manages ‘surging inflows’, if it really happens. Anyway the figures of external debt and country’s forex reserves quoted in the story, though they have some relationship in the scheme of things, do not lead one to assume a crisis. After all the richest(?) country is sitting on a debt of $16 trillion or thereabout and their ‘reserves’, whatever the level, did not save that country from problems in recent years. No central bank can expect to insulate itself from problems. What the world will be interested in knowing is, how best the problems are tackled.

M G Warrier
May 12, 2014, 8:01:00 A




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