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

“The focus area is to minimise pendency, do more quality work”

The functioning of a national commission, be it NHRC, NCSC or NCST, depends on its head. Being the chief information commissioner (CIC), what is your vision for CIC?  And what has been your experience so far? The chief information commissioner and ten informa

CIC’s changing status quo

With the help of Right to Information (RTI), the common man not only has the right to know, but also the right to question those in power. This is the foundation of democracy,” said prime minister Narendra Modi at the tenth anniversary celebrations of the Central Information Commission (CIC)

Do you think the fiscal year should be from January to December?

Do you think the fiscal year should be from January to December?

Will Delhi see the highest ever turnout in the upcoming civic polls?

Historically, voter turnout for local elections has lagged behind state assembly elections and general elections.    For example, a recent report by Janaagraha shows that Surat recorded 40 percent voter turnout in local polls, 30 percent less than state elections

Women sensitized about their rights

 A group of women were sensitized about their rights at a workshop held in the national capital on Saturday. They were informed about the anti-harassment laws and legal provisions to safeguard women inside and outside their workplace.   The workshop – organ

AAP’s uncertain future, irony of being Advani, and an author seeks freedom of speech

The Narendra Modi- Arvind Kejriwal antagonism has always been about two different kinds of populism. While it may not play out in a municipal election, the fact remains that a Kejriwal chastened by Goa and Punjab faces a mid-term test in the municipal elections. For a politician harbouring intentions of



Video

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter