PM Modi has a message for Subramanian Swamy and Raghuram Rajan

[Joe Shearer]

Bringing politics into economy will cost India let alone political parties..

I am afraid that it is inevitable, and protected only to the extent that the tenure of certain positions is pre-defined and cannot be curtailed by arbitrary administrative decision.

I read somewhere that "Government is the accelerator and central bank is the brake", both are required to drive a car. The problem is that Rajan was not letting go the brake even when the road was clear ahead. Central banks don't have mandate for growth, but governments have.

You will also agree that central banks have a mandate for restraining adventures, and that is what they are supposed to do, not growth.

There are many people here who are extremely protective about this current government and very sensitive towards any criticism, to be frank I am also somewhat like that. Actually when I look at the alternatives, a terrible sense of hopelessness runs through my spine to my head, and I become protective about the present government.

That was precisely the feeling that even strong critics of the previous government had. When they looked at the alternatives, a terrible sense of hopelessness ran through their spines to their heads, and they became, perversely, protective about that hopelessly corrupt and incompetent government. And they now feel vindicated.

 

[dray]

You will also agree that central banks have a mandate for restraining adventures, and that is what they are supposed to do, not growth.

I think government and RBI should operate in coordination, not in conflict. Every central banker would raise interest rates to reduce the flow money in the economy when the inflation rate is high, but high interest rates while controlling inflation also brings down demand and consumption, and prevents fresh internal and foreign investments due to higher cost of capital and lower demand, that reduces income, reduces job opportunities, and eventually leads to an economic stagnation. When the inflation rate comes down, central bankers are also required to lower the interest rates to reverse the stagnation. There is no doubt that we also need growth and new job opportunities to uplift our large number of poor and ensure jobs for roughly one crore young people joining the job market every year. I think that Rajan became too conservative, maybe obsessed with controlling inflation, and he failed to reduce the interest rates when the time was right. His outspoken nature and political statements made his position more precarious.

That was precisely the feeling that even strong critics of the previous government had. When they looked at the alternatives, a terrible sense of hopelessness ran through their spines to their heads, and they became, perversely, protective about that hopelessly corrupt and incompetent government. And they now feel vindicated.

Elections are about choosing the lesser evil, only the perspective differs from person to person.

Look at Bengal, many people thought that Jyoti Basu did great things for Bengal, Buddhadeb Bhattacharya ruined it, and Mamata is now again doing wonders for Bengal........I couldn't agree with any of the positions that my fellow voters took, but I have to live with that.