Updated: March 31, 2015 12:50:31 am
Letter of the Week Award
To encourage quality reader intervention The Indian Express offers the Letter of the Week Award. The letter adjudged the best for the week is published every Saturday. Letters may be e-mailed to editpage @expressindia.com or sent to The Indian Express, 9&10, Bahadur Shah Zafar Marg, New Delhi -110002.
Letter writers should mention their postal address and phone number.
The winner receives books worth Rs 1,000.
THIS refers to Jahangir Aziz’s perplexing and intriguing ‘Getting the RBI out of debt’ (IE, March 26). First, the cost of government borrowing is inextricably linked to the fiscal deficit, rather than to the arrangement of debt management by the central bank. Evidence suggests that the smooth conduct of the government’s large borrowing programme has been facilitated because the RBI has a broad range of responsibilities, including regulation and surveillance of financial institutions and markets. Second, the writer laments the mispricing of bonds and says yields need to be higher. His argument that the government needs to borrow at higher interest rates goes against the accepted norms. If the government borrows at 15 per cent, it would increase borrowing costs for others (including the infrastructure sector) tremendously. Financial repression (the RBI forcing banks to buy government bonds by imposing SLR norms) needs to be seen as a prudential requirement for banks to hold high-quality assets. Third, it is a pity that the votaries of an inflation-targeting central bank with a separate, autonomous debt office refuse to learn from the global financial crisis. Post-crisis, scholars like Charles Goodhart have advised caution in the move towards a separate debt management office.
— R.K. Pattnaik
IT’S ironic that Justice Markandey Katju invokes “the basic principle of natural justice” while ignoring the basic principle of social decorum (‘Unfair House’, IE, March 28). First, he calls Mahatma Gandhi names and then he complains when Parliament condemns him for it. Instead of exposing a wrong with irrefutable reasoning and unchallengeable evidence, Katju took to abusing his adversary. If not for the fact that The Indian Express published him, I would have considered his tirade unworthy of a response.
— D. John Chelladurai
Best of Express Premium
My way or highway
APROPOS ‘Victor’s unravelling’ (IE, March 30), the treatment meted out to Prashant Bhushan and Yogendra Yadav makes it clear that there is no place for dissent in the AAP. The same Arvind Kejriwal who resigned as chief minister of Delhi because the Jan Lokpal Bill could not be passed has unceremoniously removed the AAP’s internal lokpal. The party has turned into the fiefdom of its supremo.
— M.C. Joshi
Once seen as a party with a difference, the AAP now looks no different from other political parties. Its struggle to transcend from being a movement to a party is glaring. Arvind Kejriwal’s carefully crafted image has taken a massive beating. But make no mistake, both Yogendra Yadav and Prashant Bhushan are too ambitious and clever to be sidetracked.
— Ganapathi Bhat
🗞 Subscribe Now: Get Express Premium to access our in-depth reporting, explainers and opinions 🗞️
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.