Whatever i say will be ‘problematic’_ raghuram rajan on modi – times of india

MUMBAI: Former Reserve Bank governor Duvvuri Subbarao has credited his successor Raghuram Rajan’s “formidable reputation” for bringing sanity to the forex market when the rupee had lost nearly 25 per cent amid “taper tantrums” in the summer of 2013.

He has also blamed then then finance minister P Chidambaram’s reluctance to accept that the rupee was bleeding more because of domestic issues and less due to external factors like the taper tantrums — a reference to the US Fed’s gradual withdrawal of stimulus measures for the American economy following the global financial crisis of 2008.

“I had several conversations with Chidambaram on this, but found him reluctant to face up to this inconvenient truth. Grade 6 electricity unit plan He is too intelligent not to have seen the point; I suspect he found it politically convenient to point to an external scapegoat rather than call attention to domestic structural factors,” Subbarao, the bureaucrat-turned central banker, has written in a book.

He has also blamed Chidambaram who “wholeheartedly supported his appointment” to the Mint Road for undermining the autonomy of RBI and putting pressure on him to cut interest rates.

On the impact of the appointment of Raghuram Rajan as the new governor on stabilizing the rupee, Subbarao says “the scheduled leadership change at the Reserve Bank and the formidable reputation of my successor, Raghuram Rajan, helped restore confidence in the Indian markets”.

The book “Who Moved My Interest Rates — Leading the Reserve Bank of India through Five Turbulent Years”, is a telltale 352 page memoir by Subbarao. C gastronomie plateaux repas It hit the stands on Friday and will be formally launched next month. F gas regulations r22 It is published by Penguin Random House.

“In fact, as chief economic adviser to the government, Raghu was on board all through the exchange rate turmoil and was more actively involved in all the decisions after he was named in early August as my successor,” he notes in the book, which he began penning in the middle of last year.

On the radical measures that Rajan announced on assuming charge, Subbarao says soon after Rajan came to RBI as an OSD, they both had agreed on those steps like raising forex through NRI deposits.

“Raghu was kind enough to offer that I announce these measures before signing off. Electricity and magnetism equations But I thought that the measures would be more effective if he announced them as the incoming governor. K electric jobs test At least on this issue, my judgement worked!” he says in a chapter titled “Rupee Tantrums 137”.

Rajan , who has decided against a second term amid a spate of attacks including some of personal nature, rejected the criticism that he has kept the monetary policy “too tight” and blamed the slowdown in credit growth largely to stress in the public sector banks, stemming from “past mistakes in lending”.

He also appeared to blame “over-leveraged promoters” for voices against the clean-up at banks and said “some public sector bank CEOs with a short remaining tenure would prefer not taking stern action and recognizing NPAs” as they might “prefer transferring any problems to their successor”.

He also said that investors in bank shares do not welcome disclosures of loan losses initially, while “depositors, knowing the government stands fully behind PSU banks, are rightly unperturbed by the quality of bank balance sheets”.

Rajan said high inflation has “pernicious effects” on the weaker sections and wondered why there was so “little anxiety” over the price-rise scenario.

“Without any political push back as inflation rises, it is necessary to build institutions to ensure macroeconomic stability … Zyklon b gas canister for sale perhaps this is why successive governments, in their wisdom, have given the RBI a measure of independence,” said Rajan, who will return to academics when his three-year term ends on September 4.

Hitting back at the critics who have blamed him for keeping rates too high and thus killing demand and growth while failing to even control inflation, Rajan said, “Critics offer two contradictory arguments on inflation”.

“On the one hand, they argue that we have killed demand and growth through high rates — though this itself seems at odds with the received wisdom that we are the fastest growing large economy in the world.

“On the other, they argue that our policy has had little effect on curbing inflation, that disinflation has been a result of the fall in oil and other commodity prices.”

Rejecting these arguments, the former IMF Chief Economist said in a lecture here that the disinflation process started in late 2013, long before oil prices collapsed.

“Moreover, a significant part of the fall in oil prices globally has not been passed on domestically, as the government has hiked excise on petrol and diesel, and refinery margins have also waxed and waned.

“For instance, even as the price of the Indian crude basket fell 72 per cent between August 2014 and Jan 2016, the pump price of petrol fell only 17 per cent. Specjalizacja z gastroenterologii Therefore, while I do want to acknowledge the benign global price environment in bringing down inflation, it is not the entire story.”

Giving examples of the UK and US among other places, Rajan said, “Criticism comes with the territory, and central banks need to make the case for their policies.

“At the same time, it is important that governments around the world look beyond sometimes uninformed and motivated public criticism and protect the independence of their central bank to act. Bp gas prices chicago That is essential for stable sustainable growth.”

Raghuram Rajan , known for his outspoken ways, has no “immediate plans” to write a tell-all book on his experience as the central bank head, unlike his predecessor D Subbarao whose quite revealing memoir has just come out.

Rajan, who was accused by critics of keeping interest rates too high and was often seen as being critical of the government and its policies, making his tenure full of several controversies, said he rather plans to write on “academic issues” after leaving the Reserve Bank.

“I have no immediate plans to write a book on this subject,” he said when asked whether he would write a book similar to Subbarao’s a few years down the lane.

Subbarao, who served as RBI Governor for five turbulent years between 2008 and 2013, in his just-released book ‘Who Moved My Interest Rate’, has written about several occasions when he felt pressure from the then Finance Ministers P Chidambaram and Pranab Mukherjee to cut interest rates.

He also said “there is a price to pay, of course, for not falling in line”, referring to the government’s refusal to accept his recommendations in appointment of Deputy Governors.

While a tussle has been noticed between the RBI Governor and the government for years, it is said to have escalated in recent years, while Rajan has often been seen as being critical of the government, including on non-economic matters.

53-year-old Rajan surprised everyone last month by announcing that he would not seek a second term at RBI at the end of his current three-year tenure on September 4 and would return to academia.

Ten of the 22 governors so far — including Rajan’s three immediate predecessors — served at least five-year terms. K electric bill statement Two of them — in 1937 and 1957 — resigned early due to differences with the government.

Rajan, a former Chief Economist at IMF and on-leave Professor of Finance at the Chicago University’s Booth School of Business, was appointed RBI Governor by the previous Congress-led UPA government in September 2013.

When he took charge, rupee was at a record low and the inflation rate was among Asia’s highest. Electricity laws in pakistan While he is credited for having stabilised the forex market, he is also criticised for holding interest rates high for a long time. Gas in back and chest He began lowering the rate only last year after global oil prices crashed has since brought down the benchmark rate to a five- year low of 6.5 per cent.

RELATED STORIES candid public speeches + were one of the aspects which made the government uncomfortable about reappointing Rajan for another term.

Some of the controversial speeches made by him include the one where he quoted American political philosopher Francis Fukuyama to question whether strong governments can really help a country or in defence of tolerance in the middle of a debate started by the killing of a Muslim man over suspicion of storing beef, or questioning the premise of the high-octane ‘Make in India’ campaign.

Asked how he feels about being on the list of India’s ‘most desirable men’, the 53-year-old Governor quipped: “I wish they had done it when I was 25.”

In an earlier TV interview, Rajan had said he was open to staying a bit longer at RBI to complete the unfinished work of bank clean-up, but was perfectly happy to go.

On personal attacks on him in recent months, he had said, “Some of these (recent) attacks were ad hominem, that is imputing sort of motives, alleging things completely without any basis.” He added that he put them aside and did not pay any attention to them.

Rajan, who announced in June that he would not serve another term at RBI, said the dialogue with the government did not reach a stage where he could have agreed to stay on.

In recent months, Rajan has faced a slew of personal attacks from BJP MP Subramanian Swamy who had alleged that the former IMF chief economist was “mentally not fully Indian” and sent confidential and sensitive financial information abroad.

Rajan has also faced criticism by some others for his controversial remarks on various occasions. Gas stoichiometry worksheet At a select media interaction earlier this week after presenting his last monetary policy, he strongly defended his views saying they were “perfectly legitimate” ones and within the remit of a central bank head.

“In none of those speeches that I have made has there been an explicit criticism or an implicit criticism of the government. N gas price There are people who read the interpretation of what is the speech I have given,” he said.

Rajan said his concerns on the Make in India campaign — wherein he had pitched for ‘Make for India’ given the fragile economic conditions the world-over — have come true.