Urjit Patel, the deputy governor designate of the Reserve Bank of India, is set to head the monetary policy department. In his new role, the 49-year-old might have to do some nuancing of his views. In his writings, Patel has been a heavy critic of RBI’s performance in dealing with inflation. Referring to one of Governor Subbarao’s speeches where the governor had said inflation targeting wasn’t possible in a country like India, Patel said: “This is an astonishing series of nihilistic statements—unassisted by evidence or even a hint of scientific thoroughness—from the central bank head, pleading either hopelessness on account of India being a large and diverse federal entity, or, a form of muddled eclecticism”. In the article posted on the website of the Brookings Institute, Patel also said “It may be construed as seeking to absolve the monetary authority from pursuing low and stable inflation as even a primary—let alone an overriding or dominant—objective in the hierarchy of macroeconomic goals.” (Click on graphic)
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