This refers to A K Bhattacharya's column "The Next RBI Governor" (Raisina Hill, July 15). Given the profound impact the monetary policy has on nominal variables, which in turn influence real sector variables like growth and employment, it is imperative that emphasis is placed on the economic training of potential contenders for the Reserve Bank of India Governor's post. He must be a man of integrity, be intellectually strong and not bow to the populist pressures of North Block. We need "specialists" and not "generalists" for such jobs.
Also, the Indian economy has become increasingly globalised, with the fear of contagion always lurking. A case in point - the recent impact of the great recession on our economy. Consequently, taming macroeconomic fluctuations in an open economy requires the two blades of the policy scissors - monetary and fiscal - working in coordination. Sadly, one has seen a trust gap between Mint Road and North Block recently. This gap must be filled. However, to attain this objective the government must not compromise on the experience and, more importantly, the expertise of their preferred choice.
Manish Kumar Patna
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