STOP SPECULATING ON RBI
February
17, 2016
Stop
speculating on RBI
Apropos “RBI Guv and
Never Ending Speculation” (The Economic Times, Money & banking, February 17, 2016), one wonders why
ET should join the speculators. It is common knowledge that even in 2013 when
Dr Raghuram Rajan was being tipped for the Governor’s position, there were
other influential contenders and an opposing school of economists who were
spreading all sorts of rumours against Dr Rajan. They were again active during
the first half of 2014, gossiping about the possibility of a change of guard at
Mint Road, post General Election.
It is India’s good
fortune that Dr Rajan survived the moves against him, so far. World has
acknowledged that the leadership provided by Dr Rajan in the conduct of RBI’s
affairs has been excellent. If India decides and Dr Rajan accepts on a longer
term re-appointment, this paper should not have a doubt about Dr Rajan’s
capability to sort out his personal relationship with the University with which
he has had an enduring relationship for the last two decades.
As any new incumbent
governor in RBI takes minimum six months to ‘settle down’ and the ‘work-in-progress’
there now needs continuity in leadership, GOI may not think in terms of
replacing Dr Rajan in September 2016 and perhaps offer a re-appointment for a
longer tenure. But, reports like this can help gossip-mongers and have some
impact on the thought processes of economists and media which can influence
economy adversely.
M
G WARRIER, Mumbai
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