RBI, govt should resolve differences, come together in national interest: Panagariya

NEW DELHI, Nov 8: Amid the ongoing tussle between the government and the RBI, former Niti Aayog vice chairman Arvind Panagariya has suggested that the two sides must eventually ‘compromise’ and ‘come together in national interest’.
While the RBI is legally less independent in India than the Federal Reserve in the United States, effectively it has enjoyed the same independence as the US regulator, the noted economist said in an interview to PTI.
Observing that RBI and the government ought to work in close cooperation, he said, “Even when there are differences between the two sides, they must eventually compromise and come together in national interest”.
Panagariya, who is currently a professor of Indian Political Economy at Columbia University, pointed out that even in the US, the government and the Federal Reserve sometimes work in close cooperation as had happened in the immediate aftermath of the 2008 global financial crisis.
He, however, noted that it was a pity that the media steadfastly magnified the differences rather than highlighting the common ground the two sides share. (Agencies)