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Raghuram Rajan has been less innovative in his communication, but his actions serve to remind what several policymakers have said: inflation control is the true dharma of a central bank
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The modern lords of finance know they have to communicate well with economic agents for monetary policy to work well.
Former Bank of England governor Mervyn King used football metaphors to communicate the dilemmas of central banking. His successor Mark Carney has used the cricketing concept of corridor of uncertainty to explain his own challenges. D. Subbarao used the tragic story of Abhimanyu to explain why it was easier to enter the chakravyuha of monetary easing than to exit. The governor of the central bank of Trinidad and Tobago has said that institutions such as his should be like Lord Hanuman, symbols of strength and stability. The Mostly Economics blog points out that he has recently used five stories from the Ramayana to explain the real challenges of central banking.
Raghuram Rajan has been less innovative in his communication, but his actions serve to remind what several policymakers have said: inflation control is the true dharma of a central bank.
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