It's time to reform the RBI

While central banks around the world have become more accountable and independent, the Reserve Bank of India has somehow managed to escape reform. The 27 August issue of Economic and Political Weekly features a hard-hitting article by former IMF economist Anand Chandavarkar, Towards an Independent Federal Reserve Bank of India. He concludes:

The overdue modernisation of the RBI requires a clear-cut legislative formulation of its non-hierarchical objectives, constitutional independence, coordination with the GoI, accountability, transparency, and governance reforms. This would also close India’s democratic deficit and incorporate monetary federalism.

Hat tip: Vikram at True it is.

Comments

[Edward Hugh]

Looking at what's going on in Italy, India doesn't seem to be the only country in need of central bank reform :).