West's central banks are undergoing a profound shift. RBI must not follow

Starting with the Fed, the West's central bankers are descending into a dangerous spiral of overconfidence. RBI has no such room for error

Central banks, particularly in the West, are going through a profound shift in their mandates, responsibilities, and mechanisms — but one that is being pushed through without fully understanding the consequences, and without democratic discussion. India can sometimes blindly follow the tides of policymaking fashion that emerge from the financial centre, under the illusion that as a mature economy it can make similar changes. But India is a developing economy, with less stable institutions — and so it must be on guard against too hasty shifts in policy priorities, particularly when it comes to the Reserve Bank of India.

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