"'We’ve seen this movie before in so many emerging economies,' said Vivek Dehejia, an economist and fellow at the IDFC Institute in Mumbai. 'There’s a central bank that’s trying to run a tight ship to keep things in check' and a government facing a reelection battle that wants to 'turn the spigots in every possible sense.'
The Modi government may succeed in its push to make the RBI a more pliable institution, Dehejia said, but the costs might be high. 'There could be short-term political gain for the government, but the long-term damage to the economy and its already weak institutions is going to be incalculable.'"
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