Glad To Be Wrong!


Our government might have had its problems with Duvvuri Subbarao refusing to pump money into the system on demand,but I personally felt he didn’t attack the inflation problem in the country vigorously enough.So when I heard of the government’s decision to appoint a new RBI governor to replace him,I was like…….hmmmm,new guy brought in to toe the government’s line,somebody who when told to jump would ask “How High?”…….The rock star like ┬ácoverage of his appointment,in even the pink papers,made me even more cynical.”Stage-Managed”,”Command-Performance”were the sort of words that came to mind.And I tuned out whatever Raghuram Rajan had to say.

I am pleasantly surprised about his concern for savers,liquidity and inflation.And I am eagerly awaiting his Inflation Indexed Savings Certificate based on the CPI New Index.

In this case I am glad to be wrong!Here’s hoping Raghuram Rajan remains true to the anti-inflation tradition of the Chicago School of economics


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