Government of India has done well in appointing the famous financial economist as next Governor of RBI. It is a different question however whether he will be successful in the new assignment. Nowadays, in the VUCA milieu, any person in charge of economic / financial affairs will have to keep his / her fingers crossed after taking any step in the dynamic environment.
RBI's Governor is successful if circumstances match his skills and not the other way round. Y V Reddy and Subba Rao have similar views and skills. Yet, history will record that Reddy was successful and Rao was not. This is because circumstances existing during their respective periods were different.
Raghuram Rajan did foresee the 2007 global crisis. This does not necessarily mean that he can and will predict the next crisis also. Any economist would agree that economic predictions are only as good as astrological forecasts. We can only predict the past!
Rajan does not carry any political baggage or administrative chip on his shoulder. If he refuses to capitulate to political pressure and keeps his objectivity alive in all tricky situations, probability of his success as Governor will get enhanced.
RBI's Governor is successful if circumstances match his skills and not the other way round. Y V Reddy and Subba Rao have similar views and skills. Yet, history will record that Reddy was successful and Rao was not. This is because circumstances existing during their respective periods were different.
Raghuram Rajan did foresee the 2007 global crisis. This does not necessarily mean that he can and will predict the next crisis also. Any economist would agree that economic predictions are only as good as astrological forecasts. We can only predict the past!
Rajan does not carry any political baggage or administrative chip on his shoulder. If he refuses to capitulate to political pressure and keeps his objectivity alive in all tricky situations, probability of his success as Governor will get enhanced.
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