Measures to address the issues plaguing RBI

Monopoly of interpretation and choice of instruments of intervention would always, in an uncertain economy, continue to be a matter of debate.

There is need to pay due regard to both autonomy and accountability. There has to be a forum within our democratic structure where the RBI is obligated to explain and defend its position.

Different countries have taken different routes and by and large each model is appropriately tuned to their specific contexts.

The oft-quoted US example is a good model to work upon.

Presentation by the chairman of the Federal Reserve to the Congress makes for public exposure and transparency but does not take away the chairman’s autonomy.

We need an appropriate and structured forum to strike a balance between unrestrained autonomy and blatant political intervention.