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27 SEP,2021 | MEDC
A new debate has emerged on whether Central Banks should take cognizance of the socioeconomic impact of climate change and incorporate it into their policymaking processes. It would probably be incorrect to do so as that is essentially the government’s mandate. In their desire to be politically correct, some Central Banks have climbed onto the bandwagons of climate change and inequality. However, it is heartening to see that the RBI has desisted from doing so. With the right policy support from the government, there is no reason why climate change cannot be tackled. Political incentives for populism could weaken India’s democracy, and it isn’t worth taking that risk. Let the RBI focus on its primary role – being the economy’s inflation fighter in an increasingly unpredictable scenario.
*Photo Credit: Google
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