Bhagwati tells Modi to retain Rajan as RBI governor

Noted economist Jagdish Bhagwati has asked Modi to hold regular meetings to communicate his development agenda and work closely with Rajan

GN Bureau | May 20, 2014



Known for showing his unflinching support to prime minister designate Narendra Modi, noted economist Jagdish Bhagwati has suggested retaining Raghuram Rajan as the governor of Reserve Bank of India amid speculation that he could be asked to leave by the new government.
According to media reports, Bhagwati termed BJP’s win as an astonishing triumph of Modi and asked him to hold regular conferences to outline his development agenda in public and work in coordination with Rajan.

“Unlike the UPA leaders, the new PM, who is not tongue-tied, should hold monthly press conferences where he can bring in his agenda and actions before the public and carry them with him,” Bhagwati said.

In the past few months, BJP leaders, including party treasurer Piyush Goyal and senior leader Subramanian Swami have attacked Rajan for his inability to tame inflation. However, Bhagwati does not quite agree with the idea of sacking the RBI governor as the solution to the problem of persisting inflation.

“I also believe that he (Modi) ought to keep Raghuram Rajan. He is a major economist who commands international respect,” Bhagwati added.
Meanwhile, Rajan tried to downplay the problem and had recently asserted the independence of the central bank.

Rajan had said, “I determine the monetary policy. I say what it is. The government can fire me but the government doesn't set the monetary policy. I am happy to talk to the government but ultimately the interest rate that is set is set by me.”  

 

 

Comments

 

Other News

70 words that define India, why Doklam stand-off won’t lead to a war, and more

As India celebrates 70 years of freedom, Governance Now looks back and picks 70 words – or phrases, buzzwords, slogans, events – that best define this ancient nation and young democracy. Here, you will find much to be proud of, much tinged with pangs of nostalgia. Then there are entries that

A dose of PPP in healthcare is what the doctor recommends

Dr Kenneth E Thorpe, a professor of health policy and management at Emory University in the US and also the executive director of Partnership to Fight Chronic Diseases (PFCD), says that the government alone cannot do everything. “They don’t have the resources and capacity. So we have to fin

EESL signs MoU with oil companies for energy saving appliances

Energy Efficiency Services Limited (EESL), a joint venture company of PSUs of ministry of power, signed an agreement with oil marketing companies (OMCs) of ministry of petroleum and natural gas for distribution of energy efficient appliances under the flagship Unnat Jeevan by Affordable LEDs and applianc

Jammu airport’s upgraded terminal building inaugurated

Union minister for civil aviation, P Ashok Gajapathi Raju inaugurated the upgraded passenger terminal building of Jammu airport.   Notably, Jammu airport belongs to the Indian Air Force, and airports authority of India (AAI) maintains a civil enclave for civil aircraft operat

Election Commission shows it has spine

The election commission has become increasingly assertive in the past few months, showing its mettle in times of electoral challenges.   Weeks after rooting from EVMs and just days after the poll panel declared votes cast by two rebel Congress legislators in the Rajya Sabha e

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?

Is Amit Shah`s blueprint for 350-plus seats in 2019 Lok Sabha elections achievable?



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter