The Financial ExpressPosted: 2008-12-31 00:35:48+05:30 ISTUpdated: Dec 31, 2008 at 0035 hrs IST
: The editorial (‘Price growth high’, Dec 20) warns against RBI being too interfering. It also advocates greater accountability for RBI’s actions. The problem is, more accountability often means more interference which is mostly political, an anomaly in these times when state intervention is considered both pious and blasphemous. Effectiveness is preferable over efficiency, as Drucker put it. RBI can be all but unpopular with the cash-rich few who indulge in labyrinthine financial games. No open economy can be immune to market swings. A central controlling agency which can understand them and act is sine qua non. Conservative wisdom that has staggered meltdown effect is preferable to convoluted activism.
—Subhashree Kishore New Delhi