Press Club of India, Indian Tehalka News
“Each one approaches economy from his/her own perspective. Government’s perspective is growth. Central bank’s perspective is monetary stability.”
Former Finance Minister P. Chidambaram on Saturday described Rbi Governor Raghuram Rajan, whose three-year term ends in the first week of September, as “one of the most outstanding economists in the world”.
Defending Mr. Rajan, he said, “The UPA government appointed one of the most outstanding economists of the world as the RBI Governor. We placed full confidence in him at that time and we continue to place full confidence in him today.”
“I am beginning to think whether this government deserves Rajan,” he replied, when asked whether he should be given a second term.
Interacting with reporters on two years of the Narendra Modi government at the Congress headquarters, Mr. Chidambaram first chose to ignore questions on BJP leader Subramanian Swamy’s attack on Mr. Rajan, insisting that the Congress will respond if the Prime Minister and the Finance Minister speak against the present governor.
In a letter to Mr. Modi two days ago, Mr. Swamy asked him to sack the RBI governor, charging that his insistence on high interest rate had led to recession in the domestic small and medium industries causing not only a sharp decline in output, but also massive unemployment of semi-skilled labour.
“The world over, Finance Minister and Central Bank governor engage in such a dialogue that it does not mean the Finance Minister questions the competence of the RBI Governor. Each one approaches economy from his/her own Perspective. Government’s perspective is growth. Central bank’s perspective is monetary stability,” he said.
From: The Hindu
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