The decision by Raghuram Rajan not to seek a second term as Governor of the Reserve Bank of India is likely to roil global markets, which regarded him as a critical anchor for the Indian economy. Indeed, the ad hominem attacks on Rajan in recent months raise large questions with serious implications for India.
PHILADELPHIA – The decision by the widely respected economist Raghuram Rajan not to seek a second term as Governor of the Reserve Bank of India (RBI, the central bank) is likely to roil India’s financial markets, which regarded him as a critical anchor for the country’s economy. Investors will now dissect the implications of his departure for the ability of the monetary authorities to ensure price stability and encourage growth, or rebuild a banking system beset with non-performing loans.
PHILADELPHIA – The decision by the widely respected economist Raghuram Rajan not to seek a second term as Governor of the Reserve Bank of India (RBI, the central bank) is likely to roil India’s financial markets, which regarded him as a critical anchor for the country’s economy. Investors will now dissect the implications of his departure for the ability of the monetary authorities to ensure price stability and encourage growth, or rebuild a banking system beset with non-performing loans.