Today's Market: Can the government and the RBI work together? - Indian Stock Market News
Today's Market: Can the government and the RBI work together? - Indian Stock Market News
Online comments posted on July 18, 2014:
Online comments posted on July 18, 2014:
First, answer to the question: Yes, GOI and RBI
can, will and have been WORKING TOGETHER HARMONIOUSLY.
Differences in policy
perceptions do not indicate an ‘impaired’ relationship. During their over 65
years of co-existence, post-independence, there were not many occasions, GOI
played ‘politics’ with RBI or the central bank ‘refused’ to fall in line once
those in charge of governance of the nation took policy stances on issues
affecting financial sector. The transparency in interaction between the two(RBI
and GOI) and occasional pre-emptive utterances on monetary policy issues by
over-enthusiastic officials in GOI are not indicative of any deep-rooted
malignancy in the relationship. Other than the legislatures, there are some
institutions like Judiciary, Reserve Bank of India, Election Commission and CAG
which have stood the test of time and have by and large met the expectations of
the authors of the constitution and its owners, ‘WE, THE PEOPLE’. They may need
reforms with changing times. But it is in national interest to leave their
foundations intact and build on their experience and expertise gained over a
period of time.
can, will and have been WORKING TOGETHER HARMONIOUSLY.
Differences in policy
perceptions do not indicate an ‘impaired’ relationship. During their over 65
years of co-existence, post-independence, there were not many occasions, GOI
played ‘politics’ with RBI or the central bank ‘refused’ to fall in line once
those in charge of governance of the nation took policy stances on issues
affecting financial sector. The transparency in interaction between the two(RBI
and GOI) and occasional pre-emptive utterances on monetary policy issues by
over-enthusiastic officials in GOI are not indicative of any deep-rooted
malignancy in the relationship. Other than the legislatures, there are some
institutions like Judiciary, Reserve Bank of India, Election Commission and CAG
which have stood the test of time and have by and large met the expectations of
the authors of the constitution and its owners, ‘WE, THE PEOPLE’. They may need
reforms with changing times. But it is in national interest to leave their
foundations intact and build on their experience and expertise gained over a
period of time.
M G Warrier
Comments