Every election season, Indians are treated to politicians canvassing door to door to explain their policies. Too bad we don’t find central bankers doing the same.
England could prove a trailblazer here. Charles Bean, deputy governor at the Bank of England, started a nationwide tour this week to explain his central bank’s decisions in recent months. To most laymen around the world, monetary policy seems esoteric and central banks mysterious. So, this may be a novel way to demystify, say, quantitative easing, and improve transparency in the process.
Reserve Bank of India (RBI) governor D. Subbarao could take this leaf out of England’s book. In an interview this month with Central Banking Publications, Subbarao noted transparency as one of three goals to pursue in his first three years. At a time when everyone’s wondering how RBI will manage record government borrowings or tame rising food inflation, what better way to communicate than a public tour? That’s a rath yatra everyone should support.