Send Raghuram Rajan back to Chicago, suggests the ruling BJP’s newest Rajya Sabha member Subramanian Swamy, accusing the Reserve Bank of India governor of “harming the nation’s economy.”
“I think the RBI governor is not quite right for our country. I don’t want to say much about him, but his decision to increase interest rates so as to cut down inflation and stabilize the economy, has backfired and has badly affected the nation,” Mr Swamy said today, adding, “All the industries have collapsed and as a result unemployment has increased.”
Dr Rajan “should be relieved of his responsibilities as soon as possible and sent back to Chicago,” said the BJP lawmaker, known for his controversial comments. Raghuram Rajan is the Distinguished Service Professor of Finance at the Booth School of Business at Chicago University and is on leave to serve as the central bank’s governor.
“It is Swamy who should go abroad and teach. That will put an end to chaos and blackmail in parliament every day,” said the Congress’ C Hanumanth Rao.
Dr Rajan is currently out of the country and has not responded to the charges made by Mr Swamy.
Addressing students at England’s Cambridge University yesterday, the central bank chief described his job of formulating monetary policy in India as a”‘joyful” and easy task, and said complexities arise when ensuring its political acceptance.
“You can’t bulldoze your way in some of these situations and therefore you have to be a little more clever… You have to understand where altering a policy from Economics 101 will make very little difference, but be politically more acceptable,” Dr Rajan said.
Asked how easy he found his job of economic policy formulation in India, he joked: “Formulation is very easy. I think it is harder to implement the policy.”
Dr Rajan was appointed RBI governor during the term of the Congress-led UPA and when the Narendra Modi government came to power in 2014, his position was seen as precarious. But he has emphasized that there is a “respectful relationship” between the central bank and the government.
Last year, PM Modi had publically praised the RBI Governor for “perfectly” explaining complex economic issues to him in regular one-on-one meetings.