The case for baby RBIs

Despite its admirable competence and proven track record, the Reserve Bank of India doesn't have the capacity to supervise an economy that's growing so fast and becoming larger by the year

Here’s a heretical thought: Should India have regional monetary institutions? The answer depends on which central banking model you want to follow: A centralised one like what we have and which is a colonial legacy; or a decentralised one like the one they have in the US.

And that in turn depends on what sort of federation we want to evolve into in this century. This one is becoming increasingly dysfunctional because too many narrowly focused politicians are chipping away at it.

Or, if you like, just as the maximisation of individual utilities need not, and mostly does not, maximise social utility,