An important message to the Government from RBI History volume 4

The author has not only captured well the essence of the RBI history Volume 4 but also brought out the message that RBI plays its role effectively and comes to the rescue of the Government by providing timely warning and suggesting ways and means to come out of the economic crisis which the Government cannot ignore. This history volume in particular conveys the message that RBI Governors never go wrong in their policy judgement and it is for the Government in power to evaluate the message and act decisively to save the economy from all impending dangers. This is what Dr Subbarao also did but unfortunately his advice has been not only ignored but also has been openly  challenged and  condemned inviting all troubles to the economy. Next volume of RBI history is sure to record all these differences of opinion between the RBI and the Government and how the lack of coordination between the two led to the avoidable consequences on the economy in terms of slow growth, high inflation, high fiscal deficit, high current account deficit ,rupee depreciation and volatility in all financial markets.

Dr.T.V.Gopalakrishnan

(This comment  is in response to the article 'History of economic crisis and reforms: Deja Vu?' that appeared in The Mint dated 16/9/13)