Well balanced and very well written editorial. As rightly indicated, lack of coordinated approach between the Government and RBI during the last five years did all the damage to the economy not withstanding the fact that the RBI had warned the Government repeatedly to be more prudent and serious in its Fiscal policy management and supply chain management to control fiscal deficit and inflation. The FM took it otherwise and he felt that RBI did not toe his line. The difference of opinion on policy issues between the Govt and RBI which was made public by their utterances gave room for others to exploit in their own way resulting in the negative outcomes both on fiscal and monetary policy stance. The fact that RBI has never let down the Government in its history of past several decades of functioning and cannot let down the present Govt for all its objectives has been ignored by the Government causing to widen the gap between the Govt and the RBI. The result is there for all to see and the Government is exposed for its failure for economic growth, high deficit, high current account deficit, high inflation, fast depreciation of rupee and losing the image as a fast growing economy. The crisis of confidence has led to economic crisis. The economy has all potential to come back on track and the only solution is for the Government and the RBI to come together and act without having any ego on supremacy. The moment they join, economy will turn into a performing one.
Dr.T.V.Gopalakrishnan
(This comment is in response to the Editorial RBI Governor and his legacy appeared in Business Line dated 31/8/13)
No comments:
Post a Comment