This refers to the article “The Subbarao years: A defence” (June 1) by Abheek Barua. Though I agree the criticism of the RBI Governor D Subbarao’s handling of inflation is fraught with an oversimpflication of the current inflation dynamics, I think the author missed an important point — the complete irresponsibility demonstrated by the central government (read food ministry and finance ministry) in managing the supply side and government finances. Even if Mr Subbarao had not fallen “behind the interest rate curve”, the inflationary pressures could not have been controlled. The RBI governor’s only fault was his inability to facilitate communication between the central bank and the central government. The RBI could have used various opportunities to highlight the importance of the supply side and fiscal management instead of merely tinkering with the monetary policy even when it was “behind the interest rate curve”.
K V Rao, Bangalore
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