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.


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