Comments by "Rutvik" (@rutvikrs) on "'India failed to generate reforms needed for growth’, says former RBI Governor Raghuram Rajan" video.
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@amitpathak3279 Maybe you don't understand the story, so let me explain: 1. Rajan is a market capitalist, a proponent of the market as a perfect mechanism, advocate of supply side economics, anti stimulus (no money printing) and anti inflation camps. These were republican platforms and positions in his day(today libertarian). He made his career opposing Greenspan who introduced Quantitative easing in the west. If he was true to his positions, he'd have resigned from his advisory posts in the UPA-1 and UPA-2. While he was an advisor, MMS broke every rule in RR's manual in response to the 2008 crash. They printed money thrice, spent the rest of the tenure handing out money to the poor aka demand side economics for votes(MNREGA and fuel subsidy), destroyed market mechanisms in rural India(when everything rural was subsidised by the state) and oversaw growth by inflation.
2. When the chickens started coming home to roost in 2011-14 and the printed largesse was depleted, he took over crisis-ridden RBI in 2013. There was an excess supply of money which required a response on the interest rate front. Him and Chidambaram tried to steady the ship by hiking interest rates while trying to keep state institutions afloat(FCI, bad debt-ridden state owned banks and non Navaratna state companies) because disinvestment before elections would have been disastrous.
2. By 2014, money supply was in a critical state and RR remembered his academic positions. He kept the interest rates high and did everything to stop additional borrowing while BJP was hamstrung by previous commitments. I'd have no problem with the guy if he kept to this but he kept on giving statements against the government. The government was declined capital infusion to deal with legitimate crises. The best part is his duplicity in his academic work and public statements. His 2019 essay lists the inherited situation and his 2020 statement blames "political and social agenda" for lack of growth. This is like your bank manager calling up kids to tell them that their father does not buy them gifts because he doesn't like them while using his role at the bank, asking the father to pay back more.
3. I laughed hard at his answers on the challenges for the MSME sector, his policy and position are a part of the problem. India's elite like Sen(the best philosophical argument against reservation), RR and even Bhagwati love to roleplay conservatives positions outside of India but validate Congress or Communist stances that goes against their public and academic stances.
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