Column : Is a foreign governor better for RBI?
To begin with, the advantages of having a non-resident governor could be looked at. First, a governor of a central bank who has run the affairs of the bank successfully certainly qualifies for candidature. If the performance has been exemplary, one quite clearly qualifies for a set of countries that have similar structures, such as Canada and England—both developed countries. But the same may not hold true if a central banker from a developed country were to be considered for a country like ours where conditions are vastly different and priorities less aligned to those pursued in the West.
Second, the outsider can bring in a fresh way of thinking to central banking, especially when this sector is in a state of flux. Experiences from other central banks’ handling of crises-like situations are always helpful when drawing up strategies for the domestic central bank. The crises witnessed in the US and the euro regions provide sufficient case studies that have been seen through by central banks via
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