Dialogue of the Deaf: The Government and the RBI

by T.C.A. Srinivasa Raghavan

Central Banks are much like what Voltaire once said about god — if he did not exist, it would have been necessary to invent him. When the times are good, they are taken for granted; when things go wrong, they are prayed to. Like god, central banks also move in mysterious it is hard to tell how much of what they do has economic substance and how much is purely political.
Dialogue of the Deaf is the history of the politics of monetary policy in India. The workings of the Reserve Bank of India and its strange relationship with the government forms the core of the book. It is forever walking the tightrope, torn between the law that governs it and the politics of the governments that control it. Or, as was famously said by the Governor of the Bank of England when it was being set up, it has to play the role of a ‘Hindoo wife’ who offers advice but never asserts herself.
In this easy-to-grasp book, T. C. A. Srinivasa Raghavan has described some of the main elements of this complex relationship with facts, anecdotes and analysis stretching back to nearly 180 years in a manner easily accessible to the lay reader who wants to get a sense of the workings of money, monetary policy and the men who control it in India

Genres: Economics, History, India, Finance, Nonfiction

285 pages, Kindle Edition

First published March 20, 2017

Reviews

[Amrendra · Rating 5 out of 5]

This is a most unique book in the sense that there are hardly any books out there where you get to read the history of India's Central Bank. This 2017 book by TCA Srinivasa Raghavan who had an eight year long association with the RBI as it's historian with access to its archives is meant for anyone wanting to get a sense of India's monetary history, policy, politics, personalities and the larger institutions that influence them all.

Chronicling the interplay of politics and economic policy, the writer has beautifully captured the ever tenuous relationship between the RBI and the Finance Ministry right from the times of Pundit Jawaharlal Nehru to Manmohan Singh. It touches succinctly upon the era of post independence industrialization and forex shortages, the fiscal profligacy post 1970s, the wise and measured stewardship of the bank under some of it's best Governors - Rangarajan, Bimal Jalan and YV Reddy, the rather inglorious phase of monetary expansion during 2009-2012 and the mess it has left us into.

Vividly anecdotal, deeply researched and presenting an insightful macro picture of rather a hazy world of Government policy, economics and high finance, this one packs a true punch within its 272 pages. The book explores what central banks do and what and how they have done in India so far.

[Anujit Mitra · Rating 3 out of 5]

The author was appointed as a consultant to RBI for writing its history. His close interactions with officials in RBI and GoI helped him further to follow and observe how the relationship between the two has grown over the years. He has his own perspectives. To the reader it will appear the major policies which shaped our economy were influenced by personalities and many a times by pressure from outside agencies. That would be the case in most of the other countries as well. India’s case has been chronicled well here. One big disappointment is that the book was published in 2017 and covered till D. Subbarao’s regime in RBI, which is prior to the entry of RRR in the picture. The period after that, had it been covered, would have made the book even more interesting and action packed. Another big let down was the extremely poor editing. I fervently hope that a revised and updated edition will come to cover both these short-comings.

[Viswadutt · Rating 3 out of 5]

When asked about the autonomy of RBI, YV Reddy quipped, "I am very independent. The RBI has full autonomy. I have the permission of my finance minister to tell you that". The book examines the RBI's relationship with govt. (read ministry of finance) which is most of the times subservient to the incumbent of the day.

The book is becomes a little repetitive because of the way of narration and has a lot of typos. The book aims to cover the RBI history but it did so only till the end of Dr. Subbarao's regime as RBI guv. It also misses to draw from the biographies of YV reddy or Subbarao to add perspective. It would have been great if the book has dwelt on the new inflation target frame work, monetary policy committee, reasons for RBI's inability to regulate PSBs.

Overall a good read to understand the RBI history, evolution of monetary policy and banking regulation.

[Pramod Divedi · Rating 5 out of 5]

This books spells history of India (my favorite topic) from RBIs perspective.

It starts from how central banks came into existence and how in India economy was managed from days of East India Company to existence of RBI in 1935 contributions of JM Keynes till days of Duvuri Subbarao. The challenges RBI faced and the nonsense consecutive govt created in name of Politics.

It's a must read for everyone who is keen and sees his career in financial services.

It also shared some interesting trends like India faced financial turmoil at the end of every single decade and RBI had problems with every single Tamilian Finance Minister.

[Nkmgmt · Rating 4 out of 5]

TCA Srinivasa Raghavan is the guru of political economics for the common readers. He has the devotion to digest the complex topics , simplify to the core and deliver in a crisp easy to grasp form, as a quotable quote, slogan or proverb...

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[Imran Khan · Rating 2 out of 5]

Disappointing to start with. TCA hasn't followed either chronology or particular themes in organizing the book. Repetition of certain parts makes it a bit boring. This book is neither esoteric nor fun!

[Nirankar · Rating 3 out of 5]

Whole picking this book, thought of it as commentary on relationship of RBI with Government from economic perspective with fair representation of point of view from both sides. However, it's more of an elaborate history of RBI. Beyond a point, the core arguement becomes too repetitive.

[V.Shanmugam · Rating 4 out of 5]

I always wonder who sets the policy is it RBI governor or prime minister. This book gives a insight in to what happens between RBI and government. It is worth reading if you want to know how RBI works.

[Radhika Ayalur · Rating 2 out of 5]

A quick read on the RBI-Government relationship. Tends to be repetitive, could've been made a little more structured to make it a more engaging book.

[Navdeep Pundhir · Rating 5 out of 5]

A classic, period!

[Ganesh Giri · Rating 4 out of 5]

Ganesh Giri DeaF (LT Bhuwan Giri2014)

[சுயேபெர் SuJéBṚ Joshy · Rating 4 out of 5]

Good to know some history of RBI..But seems a little political.