Reserve Bank of India governor Raghuram Rajan should be removed as his policy of increasing interest rates “in the garb of controlling inflation” has hurSpeaking to reporters, Swamy said Rajan’s policies had led to “unemployment and collapse of industrial activity”. “In my opinion, RBI governor is not appropriate for the country.I don’t want to speak much about him. He has hiked interest rates in the garb of controlling inflation that has damaged the country,” Swamy said. “The sooner he is sent back to Chicago, the better it would be,” he said.Rajan is on leave from the University of Chicago’s Booth School of Business where he was a professor before taking up post of chief economic adviser in the finance ministry and later moved to Mumbai to be the governor of RBI.The remarks reflect the abject and limited understanding of factors that lead to a thriving economy. Lack ofplans,incessant bickering, one upmanship, loose cannons galore, to name a few, make for a healthy economy!
Rajan has won praise from across the globe for his handling of monetary policy and is seen as a safe pair of hands who has stabilised the currency against the backdrop of a turbulent global economy.The relationship between Rajan and the government had shown signs of stress over interest rates and several issues linked to monetary policy. But since the past few months the relationship has improved but the RBI governor has faced criticism from some minister’s for his frank views on issues linked to the economy and politics.t the economy, senior BJP functionary Subramanian Swamy said on Thursday.