Why it is difficult f0r rbi and govt to manage inflation?
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The Reserve Bank of India (RBI) Friday reinforced the importance of central bank autonomy and warned that the administration’s focus on short-term goals could be harmful to the economy, linking the achievement of long-term financial stability to the regulator’s conservative approach.

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Government interference undermines RBI’s functional autonomy: Viral Acharya
By ET Bureau | Updated: Oct 27, 2018, 08.56 AM IST
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Viral Acharya also asked the government not to bypass the central bank’s powers over payment and settlement systems by appointing a separate payments regulator.
The Reserve Bank of India (RBI) Friday reinforced the importance of central bank autonomy and warned that the administration’s focus on short-term goals could be harmful to the economy, linking the achievement of long-term financial stability to the regulator’s conservative approach.
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That seemed to be in line with recent developments that have seen the regulator appearing to challenge the government’s line of thinking.
Undermining the regulator’s independence could be “catastrophic,” RBI deputy governor Viral Acharya said, citing the examples Argentina’s former central bank chief, who quit in a dispute over the transfer of reserves, and the recent criticism of their central banks’ actions by the US and Turkish presidents.
He used a cricketing analogy to illustrate his point.
“A government’s horizon of decision-making is rendered short, like the duration of a T20 match, by several considerations. There are always upcoming elections of some sort — national, state, mid-term, etc,’’ Acharya told an audience at the AD Shroff Memorial Lecture in Mumbai. “In contrast, a central bank plays a Test match, trying to win each session but importantly also survive it so as to have a chance to win the next session, and so on.’’
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4
Government interference undermines RBI’s functional autonomy: Viral Acharya
By ET Bureau | Updated: Oct 27, 2018, 08.56 AM IST
gplus
aPlus
Save
VIEW IN APP
Viral Acharya also asked the government not to bypass the central bank’s powers over payment and settlement systems by appointing a separate payments regulator.
The Reserve Bank of India (RBI) Friday reinforced the importance of central bank autonomy and warned that the administration’s focus on short-term goals could be harmful to the economy, linking the achievement of long-term financial stability to the regulator’s conservative approach.
ADVERTISEMENT
That seemed to be in line with recent developments that have seen the regulator appearing to challenge the government’s line of thinking.
Undermining the regulator’s independence could be “catastrophic,” RBI deputy governor Viral Acharya said, citing the examples Argentina’s former central bank chief, who quit in a dispute over the transfer of reserves, and the recent criticism of their central banks’ actions by the US and Turkish presidents.
He used a cricketing analogy to illustrate his point.
“A government’s horizon of decision-making is rendered short, like the duration of a T20 match, by several considerations. There are always upcoming elections of some sort — national, state, mid-term, etc,’’ Acharya told an audience at the AD Shroff Memorial Lecture in Mumbai. “In contrast, a central bank plays a Test match, trying to win each session but importantly also survive it so as to have a chance to win the next session, and so on.’’
⬆️⬆️⬆️⬆️⬆️
HOPE IT HELPS
pls Mark me as brainliest ✅✅
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