Suraj wrote:Rajan is demonstrably a bad match for all these responsibilities . He is not a bureaucrat. He's an intellectual who loves public attention. There are more public speeches by Rajan online than by his predecessor and successor combined, despite them together having twice the duration of tenure as his own. What exactly makes him so much more speech worthy ?
Not according to the evidence rolled out so far, all of which suggests he did his job about as well as could be expected within the constraints of his office, and he remains fairly well regarded by the markets, investors, industry as well as his peers including the likes of Arvind Subramanian, Bimal Jalan & D Subbarao.
His time on the lecture circuit & book tour doesn't take away from that - there were more public speeches by Rajan than by his predecessor & successor combined before
he was appointed to office. That isn't out of character for an economist, which is what he was before taking office, and what has been since demitting office.
Viv S wrote:Rajan didn't block the demonetization proposal because the govt never asked him to implement it or even told him that such a thing was planned. He was verbally asked his opinion about such an exercise and he gave it as honestly as he could have. Given the sensitivity of the move, if the govt felt that they ideally needed a governor who was personally supportive of the move, well then that's that.
That is a bunch of hearsay since neither you nor I were privy to whatever he decided. Whatever Rajan claims was his reasons, are his own justifications.
The only justification that Rajan gave for not seeking an extension was that "there was no offer on the table.
But the govt did
feel him out on the demonetization move just a few months before his tenure was to expire -"I was asked by the government in February 2016 for my view on demonetisation, which I gave orally. Although there might be long-term benefits, I felt the likely short-term economic costs would outweigh them. I made these views known in no uncertain terms."
"I left the RBI in September 2016, and as I have said in the book, at no point during my term was the RBI asked to make a decision on demonetisation."
"The duty of the central bank and other regulatory bodies is to work together under the overall direction of the elected representatives of the people. You cannot go off in a separate direction. There are some areas where you have a duty to warn, to persuade, to sometimes say no, and that is something I have talked about in the book. As Dr Y V Reddy talked about in his book, you may be against a certain move and you think it is improper but ultimately after making your arguments, it is the government which has to decide. You cannot be a fifth column inside government, undermining the legitimate right of the government to decide."
Suraj wrote:The RBI governor's job is the same as the IMF chief's post, which is exactly why Rajan sucked at his job - he's more interested in being a publicity hound than actually being an original intellectual contributor. Not a single major successful policy initiative is his own.
GST: FinMin and PMO
MPC: Urjit Patel
Payment Banks: Nachiket Mor
For a technocrat and intellectual, he has no intellectual contribution at all. It's like a university professor without a single primary author credited paper, and just a bunch of meeting minutes attendees logs to show for his mental abilities.
DeMo: "Success" is highly debatable (on a relevant thread) and far from a given truth.
GST: Fiscal reform - nothing to do with the RBI.
MPC: First proposed by M. Narasimham led advisory group setup in 1999. Reiterated by half a dozen committees over the years. Actual draft of Indian Financial Code negotiated between MoF and RBI in 2014-15.
Payment Banks: Mor committee formed by Rajan to do a granular analysis of existing financial inclusion proposals.
In general, it is not the RBI governor's job to participate in expert committees and it would be irresponsible for a governor to invest his time engaged in such an activity instead of focusing on the broader areas of policy.
That being said, Rajan has previously led such study groups. He chaired the Committee on Financial Sector Reforms, drafted the Economic Survey as CEA and then chaired the Committee for Evolving a Composite Development Index of States. And as an economist, he's produced a variety of books and papers, the most famous of which was presented at Jackson Hole in 2005.