How fragile is the Indian Economy? With the appointment of Raghuram Rajan as Reserve Bank Governor the stock market has shown a recovery sign. The rupee now strengthened by hefty 138 paise to trade at 65.69 against the dollar at the Interbank Foreign Exchange market after fresh measures by the RBI. It is said that dollar selling by exporters and banks and fresh measures announced by new RBI Governor Raghuram Rajan to curb the rupee's slide helped domestic currency recover.
Where were these exporters and banks when rupee had nose-dived to bottom? Are the lessons of economics learned by former governor Subha Rao and present governor Raghuram Rajan different? And in a country where a single person viz., the Reserve Bank Governor could alone control the country’s financial stability, what is the need for former Reserve Bank Governor Manmohan Singh as the Prime Minister of the country and P Chidambaram as Finance Minister?
K A Solaman
Published by Deccan Chronicle on 7 Sept 2013
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