The way the Government wants to fix the inflation target by the Government, RBI will be a non entity after a few years. The proposed Monetary policy Committee will have some Government officials or some parliamentarians and Governor will only be a figurehead. With the implementation of other recommendations of the FSLRC, RBI's presence or absence in the economy will not make much of difference. Politicians will always have the Final word is what is being proved now.So far, the RBI Governors somehow withstood the pressures of the Govrnment and did not yield much. Even Dr Subbarao the former Governor had to fight a fierce battle to maintain RBI's autonomy and this stance has been getting a final go bye.
Dr.T.V.Gopalakrishnan
(This comment has been given in ET in response to a news report The Parliament will decide the Inflation Target for RBI that appeared on 8/10/2014).
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