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November 05, 2018

RBI: What is the Indian central bank's conflict with the government?

This BBC News article quotes Resident Senior Fellow Vivek Dehejia. Excerpts:

 

"It is a very messy situation. If the bank chief quits, it will shake the confidence of markets, the rupee will plunge further and investors will take money out from India. Nothing good will come out of this episode," says Vivek Dehejia, an economist who teaches at Canada's Carleton University. And a sudden spending spree could possibly hurt the bank's landmark inflation-targeting mandate, which, ironically, is one of Mr Modi's singular achievements."

 

Read the full articlehere.

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