ghosh3_MANJUNATH KIRAN_AFP_Getty Images_india money Manjunath Kiran/AFP/Getty Images

Who Should Control India’s Central Bank?

The standoff between India's government and the Reserve Bank of India isn't problematic because of the risk of infringing on central-bank independence. It is problematic because, rather than fighting to protect the public interest, the government's goal is to revive irresponsible bank lending, protect its cronies, and win votes.

NEW DELHI – The Reserve Bank of India (RBI) is locked in a bitter public feud with the administration of Prime Minister Narendra Modi over Modi’s attempts to encroach on the central bank’s independence. In fact, the government’s actions are a serious problem, but not for the reason many people seem to think.