Advice & Dissent: Reddy's take on RBI
I've changed my mind
after going through "Advice &
Dissent". Thinking of listening more and being more considerate to elders'
views...My response...
M G Warrier
Reddy’s take on RBI
This
refers to “Reddy-made central banking” by NS Vageesh (The Hindu Business Line, Book Review, July 17).
Beginning from the “History of the Reserve Bank of India, Volume I- 1935-51”
published decades ago to Y V Reddy’s “Advice & Dissent”, for any serious
student of central banking, there are thousands of pages of recorded literature
to understand the unique position of RBI among all central banks in the world. Transparency
in expression of thoughts gradually increased during the periods of Reddy,
Subbarao and Raghuram Rajan. While Rajan lost no time in responding to issues
and events on an ongoing basis, Subbarao came out with interesting revelations
through a memoir (‘Who Moved My Interest rate?’) not long after his retirement.
Reddy waited for an opportune time to come out with his perceptions about his
own experiences in government and RBI.
Raghuram
Rajan’s following observation on the back cover of the book flags the reason
why “Advice & Dissent” is a must read for policy makers and students of
central banking alike:
“Few
people know more about India’s financial system than Dr Y V Reddy. And even
fewer have the authority that he commands.”
At
a point of time when relationship issues between GOI and RBI are being blown
out of proportion, the history and biographies with us in black and white throw
light on the evolution of the role of India’s central bank in building a viable
and vibrant institutional structure for the Indian Financial System, besides
playing its core mandated functions relating to monetary policy and financial regulation
and supervision. The focus should not get diverted to ‘sensational’ revelations
made to make books interesting reading.
All
through, albeit in self-interest, GOI has ensured having a professional team to
head RBI and there is no other statutory body in India which has been
continuously lucky in this respect. One wishes media and analysts spend some time reading and understanding books like
“Advice and Dissent” before highlighting frictions between GOI and RBI or
counting how many times governors offered to resign.
M G Warrier, Mumbai
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