Opinion | Revisiting accountability at Reserve Bank of India3 min read . Updated: 15 Nov 2018, 08:32 AM IST
It makes sense to consider an accountability framework for RBI regulatory decisions so that it doesn’t take the blame for being arbitrary with its decisions
“The most independent central bank is not likely to be a socially optimal central bank," economists Guy Debelle and Stanley Fischer wrote in a paper titled How independent should a central bank be?Fischer is a former vice chairman of the US Federal Reserve and was professor of economics at Massachusetts Institute of Technology when the paper was written in 1994. Earlier, Kenneth Rogoff, professor of economics at Harvard University, had suggested that a central bank can be too independent to be socially optimal.
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