Blurb: Unfortunately, with the RBI, history repeats itself as both farce and tragedy much too often.

For a moment, it looked like Indian monetary policy making would step out into the modern world. The job of monetary policy is to be forward looking, to anticipate future possibilities, rather than practice “rear window” economics. And as financial and product markets around the world globalize and integrate, so should monetary policy divine not only what is happening and will likely happen in India, but also infer the same about the economies of the Western world and that of our competitors in Asia. Very likely, this is what Dr. Subbarao had in mind when he joined the RBI as Governor in September 2008.