Who Moved My Interest Rate: Leading the Reserve Bank Through Five Turbulent Years

by Duvvuri Subbarao

Duvvuri Subbarao’s term as the governor of the Reserve Bank of India from 2008 to 2013 was by all accounts an unusually turbulent period for the world and for India. The global financial crisis erupted within a week of his assuming office. Then, just as the impact of the crisis on India ebbed, the action shifted to combating a decade-high, stubborn inflation during 2009¬¬¬¬–11, which segued into a battle against a sharp depreciation of the rupee starting mid-2012. Who Moved My Interest Rate is an insider’s account of the dilemmas and quandaries Subbarao confronted while leading the Reserve Bank through these extraordinary economic and political challenges.
Subbarao’s five years at the Reserve Bank also marked an intellectually vigorous period for central banking around the world. Not only did the global financial crisis test the policy force of central banks, but it also raised several questions about the breadth of their mandates and the limitations of their autonomy and accountability. While much of the existing debate is set in the advanced economy context, Who Moved My Interest Rate places these issues squarely in an Indian and emerging market perspective.
This is also a compelling chronicle of Subbarao’s attempts to demystify the Reserve Bank and explain to the public its impact on their everyday lives. Honest, authoritative and deeply insightful, this book enhances our understanding of what is, arguably, one of India’s most trusted institutions.

Genres: Economics, India, Finance, Nonfiction, Business, Biography, Indian Literature

400 pages, Kindle Edition

Published July 27, 2016

Reviews

[Vivek V · Rating 4 out of 5]

An interesting account of an IAS officer, who headed the central bank of a country hit by the 2008 global recession. Read the complete review here https://wp.me/p6rxcY-1e.

[Milan · Rating 4 out of 5]

The former RBI Governor provides an Indian perspective of the financial crash of 2008 and the turbulent years that followed. This book provides a very good view at how decisions are taken and implemented at probably the most important institution of our country. He recounts the continuous pressure from the last government to cut interest rates. The importance of an autonomous Central Bank has been highlighted numerous times, which I also think is the most important thing for the RBI. He also raises a very valid point that the policies of the western countries cannot be blindly adopted in India. The conditions and priorities of an emerging country like ours are very different. He had reservations about the role of USD as the pre-eminent global reserve currency which is not unfounded.

Duvvuri Subbarao had many critics of his policies and methods. But as he says - it is very easy to criticize with the benefit of hindsight and very tough to implement decisions in real time. He also raises questions about the quality of data being provided to RBI and the country at large based on which a lot of policy decisions are being taken. Its accuracy has always been questionable.

He was a very trigger happy governor - changing interest rates 23 times during his tenure, but this was necessary due to the conditions prevailing after the Lehman crisis. I think he was a very able Governor who steered our country in the right direction in a very challenging time and stood his ground while taking decisions.

[Parth Agrawal · Rating 4 out of 5]

There's a peculiar way in which civil servants express themselves be it Mr Vinod Rai or Mr Subbarao. This is the second book that I'm reading of a civil service luminary and I guess the word luminary cannot contain the magnitude of contributions our protagonist here has made towards national cause

He's the 11th IAS officer who has been the Governor of RBI. Even Y.V Reddy, from whom he got the office, was also an IAS officer. Before Mr Subbarao, there have been IAS officer who have handled the governorship but he is the only person amongst those who has directly been promoted from Finance Secretary to RBI Governor. Once an IAS officer accepts the post of RBI governor, he's deemed to be retired from the Civil Services

I used to think that being Governor of RBI from Finance Secretary is a sure shot promotion and that too a privileged one. But my father was of the contrary opinion. He said that RBI's jurisdiction is severely limited as compared to that of the finance secretary from whose office, every single file related to fiscal money passes. I'm sure that the ambit of secretarial powers are wide but I would like to clear it out that RBI doesn't only do the job of regulating the banking sector which is the most popular image of the institution. Let me tell you the sectors which RBI regulates:

1) Financial institutions( Banks, NBFCs, RNBCs):
RBI is popularly known as the central bank or the bank of government or the last resort for the commercial and scheduled banks. What is the meaning of all these monikers? It means that RBI is not only responsible for maintaining the government money but also framing rules and regulations for the above mentioned institutions

2) Forex Management:
This includes the maintaining of Forex reserves of the country and monitoring the Current Account Deficit of the country. Why is this important? Since Indian Rupees is not a universally accepted currency, in today's globalized world, it is necessary to maintain a sustainable level of foreign exchange with the country to meet the essential requirements for which our country is totally dependent upon the outside world like oil

3) Exchange Rate Management:
There are two types of exchange rates which are followed, one is Nominal Exchange Rate and other one is Real Effective Exchange Rate(REER). In the second one, the effects of inflation of the countries is also taken into account. RBI's job is to maintain these exchange rates within a reasonable band so as to prevent a lopsided activity either in the importer side or the exporter side

4) Inflation:
In easier and popular language it is referred as, Mehengai. One of the toughest jobs of RBI because gone are the days when the inflation of domestic economy was only influenced by the domestic circumstances. Today a policy shift in the exports of Brazil can fluctuate the prices of sugar and Rice in India

I've barely scratched the surface of the duties of RBI and how does it go about performing them but i guess that will go a long way in demystifying the job of RBI. I don't know how many of you have noticed but I hardly mentioned anything that was specific to this book. After-all, there couldn't have been more interesting times for RBI and its officials than the period of 2008-2013. Surprisingly, this period also marks the tenure of our author who has had his share of interesting times be that due to the financial crisis/the Rupee tantrums(initiated by Taper Tantrums)/ NBFC regulation

It's very tempting to write a prose on each of the above mentioned topics but I know the temptation it'll create if I don't and I don't want to rob you off the 'interesting times' that one may have reading the same

"When the facts change, I change my mind. What do you do sir?-> John Maynard Keynes

[Sandeep Bhat · Rating 5 out of 5]

One of the best memoirs of recent years, Mr. Subbarao has really put his heart out of his narration of his years at the helm of RBI. Battling the economic crisis of 2008-09, the inflation of 2011-12 and deprication of rupee in 2013, he had been on his toes all through. The book actually presents to you the dilemmas a governor face and how conclusions from hindsight become irrelevant. The book is deep about the relationship of Goverment and the RBI, the issue of NBFC, the awareness of functioning of RBI at grassroots level and the power of effective communication. The language is simple and a basic technical knowledge of finance makes the read even more interesting.

[Sajith Kumar · Rating 3 out of 5]

Unusual it may seem, but the common man in India is very familiar with the Reserve Bank of India (RBI) as the bank which prints currency notes but in which you can’t open a savings account! True to the tradition and methodology of central banks worldwide, it indulges in a lot of activities designed to ensure the health of the country’s macro-economy. It is also the monetary authority of the country which keeps inflation under control while supporting growth, gatekeeper of the external sector, regulates and supervises banks, regulates payment and settlement systems and acts as the bank of banks as well as governments. Duvvuri Subbarao rose from the IAS cadre of Andhra Pradesh and climbed steadily up the ladder to become Finance Secretary to the nation. He was nominated as the Governor of RBI in 2008 by Prime Minister Manmohan Singh. This book covers the five years he was in office in which he had to tame the triple monsters such as the sub-prime crisis of 2008, European sovereign debt crisis of 2011 and the sudden fall of the rupee in 2013. Rao doesn’t distinguish between his private and official lives and he seems to have dedicated his entire time to satisfy the demands the country had placed on his shoulders. With about ten overseas conferences he had had to attend mandatorily in a year, there is practically no time left for anything. This book is not only about the challenges and dilemmas, but also an attempt to demystify the working of the Reserve Bank.

Even though the Governor of RBI is nominally independent of the controls of the government, he is bound by convention and precedent to bow to the government’s wishes, especially since the governorship is not enshrined in and protected by constitutional safeguards. The constant tussle between Rao and P. Chidambaram, the then Finance minister, is hinted at in the book. Chidambaram wanted to clip the wings of Rao, when he constituted a committee to manage liquidity concerns with the finance secretary as its chairman only a month after Rao’s assuming office. This was clear overstepping on the privileges of RBI and Rao vehemently opposed it. Besides, the government wanted a low interest rate regime in the lending sector to spur economic growth, but the bank had to intervene in the opposite direction to curb rampant inflation caused by the faulty fiscal policies of the government. Rao claims that he has set a record of 23 times in adjusting the interest rates – 13 times increasing and 10 times diminishing. The rate was reduced at first to bring into control the 2008 crisis seeping in from America and raised thereafter to tame inflation and shore up the rupee. Rao’s patient analysis of where the government had gone wrong is illuminating. He asserts that growth and inflation are not independent variables. If one is fixed, the other is automatically determined. It means that if the RBI is enjoined to deliver an inflation rate, the government will have to acquiesce in the growth rate that resulted. Governments often get confused on this idea. Chidambaram’s messy intervention in an attempt to force RBI policy is seen in another episode from October 2012. The finance minister wanted a rate cut, and so he convened a press conference on these lines just a day prior to RBI’s policy meeting. But, Rao was unrelenting and kept the rates unchanged. The minister extracted his revenge in the next G20 summit held in Mexico, where he totally ignored Rao in the dinner party hosted by the Indian ambassador. Moreover, Chidambaram refused to re-appoint two eligible deputy governors of the Reserve Bank whose terms were over but were supported by Subbarao for an extension.

The author had a baptism by fire immediately after assuming office as the governor on Sep 5, 2008. Just ten days later, the famed Lehmann Brothers went bust, setting in motion a cascade of events that embroiled the global financial sector in deep agony. Even in normal times, managing the tension between short-term payoffs and longer term consequence is a constant struggle. Rao admits that he wasn’t much familiar about the bank when he joined it, and so ushered in a program of dissemination of knowledge to the public. His rural outreach programs were the first of the kind in the country. This effort is claimed to be a part of demystifying the Reserve Bank in which the author contents himself with partial success. Data deficiency is lamented for the failure to link it to shape the economic policy. Data on employment, wages and industrial production do not inspire confidence. Data on services sector, which constitute 60 per cent of the GDP are scanty. The Modi government’s targeted implementation of GST might be a step in the right direction in doing away with the uncertainty of data.

What makes Subbarao stands out from the genre of such authors is his readiness to accept failure where it was warranted. He couldn’t stem the slide of the rupee in 2013 and was heavily criticized for that. This defeat came about through the hands off approach adopted by the bank. RBI was interested only in smoothing the transition to a stable exchange rate determined by market forces rather than trying to set the rate themselves. This means that if the market has decided to cut down the rupee by 40 per cent, the bank will only make the decline smooth to the new level rather than intervening to halt the slide at, say, 20 per cent. Rao also magnanimously attributes the restoration of confidence in Indian markets to the scheduled leadership change at RBI and the formidable reputation of his successor, Raghuram Rajan. He shows no rancor to Rajan and remains on admirably friendly terms. The book demands greater autonomy for the bank which sets monetary policy. Regulating the policy might involve short-term pain which the government doesn’t like and paves the way for an intervention from Delhi.

I took up reading this book with some apprehensions because any volume on finance and economic policy is notoriously dry. But I must admit that I never felt like abandoning the book without completing it. Of course, the subject is still dry, but somehow, Subbarao makes it a little more palatable. This is in spite of his confession that he needs to improve on the communication front. He could’ve included some corridor antics and power play that invariably attends concentration of power in a few people. There was ample room for some backroom tactics, when the government was initially hesitant to extend Rao’s term after three years supposedly on Chidambaram’s opposition. The common man is always in the mind of the author but such complex verbiage like ‘hedging the forex exposures by corporates’ could’ve been simplified or explained. The book was published in early 2016 and we sincerely wish that he should’ve postponed it by one more year to include an informative discussion on demonetization announced in November 2016 when the high-denomination bank notes which comprised 84 per cent of the money in circulation were withdrawn overnight. This was such a direct assault on black money that it reverberated across all the corners of the nation, but seems to have produced mixed results. Readers would’ve enjoyed a detailed analysis of this drastic action from a former RBI governor. In the end, it can be safely said that the book studiously avoid controversy and sensational topics.

The book is highly recommended.

[Santhosh · Rating 4 out of 5]

An excellent book which covers the day to day functioning of the Reserve bank of India and the role of the RBI governor. In this book, author (former RBI governor) describes the different dilemmas faced by RBI. Some of them are :
- Whether to give up growth to control inflation
- Whether to keep constraints on globalisation and be local after the financial crisis
- Whether to follow the advice of GoI that focuses on short term goals or to focus on the bigger picture

He talks about the policy decisions he took during his tenure and explains the circumstances for the same. He mentions the different interactions he had with developed and emerging countries' representatives and how they affected the policy-making of RBI. He also covers the clashes/discussions he had with contemporary finance ministers and emphasises the importance of the autonomy of RBI.

If you want to know how RBI's decisions can affect your day to day life, then it's a must-read.

[Bala Venkata]

Page 221 finished. He just touched on demonization.. He wrote this before DeMo though...some words are prophetic.

[Harsha Varma · Rating 4 out of 5]

Delightful read! A very candid account on the turbulent times between 2008 and 2013. Probably doesn't get enough credit for the job he did..

Favorite quotes:
Y.V. Reddy:
"Everywhere in the world, the future is uncertain; In India, even the past is uncertain." on the lack of accurate data.
"The Reserve bank is completely free within the limits set by the Government." on the autonomy of the Central bank

Keynes:
"When the facts change, I change my mind. What do you do, sir?"

P.S: Mr. Reddy's biography is out too. Bound to be a funny one!

[Akshay Mijar · Rating 5 out of 5]

An insightful memoir by the ex RBI governor on leading the bank during arguably the most volatile period in recent history. He also tries to demystify the various responsibilities of a rather opaque institution and its implication on the day to day lives of individuals in an accessible, easy to read manner.

[Geet Kalra · Rating 5 out of 5]

My first on learning the workings of a central bank. With Subbarao leading India out of the financial crisis, this is certainly an interesting read!

[Vishnu H · Rating 4 out of 5]

Here is a book I expected to be a drab read, but turned out to be a really engaging read. Duvvuri Subbarao, a retired IAS officer who went on to become the 22nd Governor of the Reserve Bank of India, recounts his years leading the Central Bank for five years.

D Subbarao’s term at the Reserve Bank coincided with a period of global turmoil. Initially beset by the ever looming price rise problem followed by the US sub prime crisis that spilled over to become the Great Recession and that followed by the Rupee depreciation woes, no other Reserve Bank Governor might have had to face similar challenges in recent times. As fate would have it, the fortunes of the Indian Economy would reverse within a week of Subbarao’s retirement.

A person should be sized up based on the challenges that he had to face and judged based on his responses to those challenges. As for the challenges that Rao took on, there is no question about their nature. In a way, he was left with no choice than to confront them. However, all credit goes to Rao in steering the Indian Economy through those troubling years and emerging through the other side without many scratches.

This book is an attempt to recount the decisions that he made in those years and the thought process that went into taking those decision. Reading through Rao, you get a good picture of the economic decision making of the country, the working of the Reserve Bank of India, a first hand account of someone who had to stare the Recession monster in the eye and also the other issues that rocked the economic scene in India.

Rao’s writing style is lucid and to the point and hence doesn’t bore you. As a person who retired as a senior bureaucrat, I was expecting the book to not have the charms that are usually associated with other popular economists. I was proven wrong. The book also serves as a very good introductory course on monetary policy making in India. It also throws light on the entire spectrum of activities of the Reserve Bank of India, which is not limited to monetary policy making or inflation targeting.

The book also provides a good insight into the level of policy coordination that took place at the international level in those days. The way in which the leaders of the world cooperated and coordinated was hitherto unseen and indeed provides much hope for the future of global economy. Rao’s memoir as an insiders account, gives us a ringside view of the events.

Another takeaway from reading this book was the numerous book suggestions that kept popping in. Some of them like portfolios of the poor, Chasing the monsoon etc. have made it into my reading list. It is a beautiful thing when you are able to get more book recommendations from an author you are reading.

Given that Rao’s book was published recently, I was able to connect to most of the events that have been discussed. Given my interest in the stock markets, I found some insights into areas where I was not particularly expecting inputs. For example, the regulation of the micro finance industry in Andhra Pradesh by the legislature and the RBI’s view that it was an act of legislative overreach by the Andhra assembly was very interesting. It would amuse me later that this same issue goes on to be mentioned in another light in the next book that I would read: Bulls, Bears and other beasts.

Overall, I think the author has done a very good job of recounting his days as the Reserve Bank Governor. History might judge Subbarao’s results as a Governor to be a “mixed bag”, but it sure won’t judge his work as an author that way. The book is an excellent read and recommended.

[Kaustubh Kirti · Rating 3 out of 5]

D Subbarao writes with much eloquence of his five years at the Central Bank considering the continuous challenges he faced of the international pressures of taper tantrums, unconventional monetary policy, evaporation of MBS / CDO etc. The five years as he mentions as per a Chinese phrase- May you live in interesting times!! and yes it was damn interesting. From bring down the repo rate from 10% to 5% and then fighting inflation for the last 3 years was much more of a challenges. It is also to be remembered that this was the time of digital boom and hype of media didn't even left the RBI Governor untouched. Yellow Journalism and media reports touched each and every statement of SUbbarao making him probably one of the first Governor under heavy scrutiny.

More that the chronology his back ground analysis both his work in RBI and the tussle with the government and media makes a good and interesting read. He points out in one of his speeches that the need for RBi today is to demystify it self and make itself more accountable and transparent. However simultaneously his make critical analysis and actual criticism of MPC and FSLRC which have set in motion cutting down the power of RBI. Today as he puts the RBI's autonomy is on stake with many of these reforms and it would depend on the role of future GOvernors of how to hive of pressure.

With relations to Government the author is open and comparative. He talks about both Chidambram and Pranab Mukherjee and their tenure as finance minister and the constant fight over cutting rates. There is no specific pin pointing which gives a non controversial outlook to the book which is good and upto academic standards. However many of the bigger reforms like financial inclusion and digital economy carry less weight-age maybe because of lack of focus at that time or limited government interest.

However as common knowledge what is most discussed is the autonomy and the tussle between North Block and MInto STreet. However D subbarao sets up some very huge constants for RBI which if applied would make things more simpler and help people. First of all he says getting out of any mindset while framing monetary policy even inflation targeting because as Keynes says - when facts change I change my mind. He follows this outlook with shedding light on the importance of communication in the role of Central Banker and issue of RBI being a knowledge institution and a key driver of financial inclusion.

Much of what has been discussed seems to have struck well with Rajan and Patel but definitely Demystifying RBI is left like a method is madness in the book. Really interesting read for looking at the 5 years perspective and various fora of the central banker with various challenges and constraints. Politics and autonomy discussions add icing to the cake and make the narrative more realistic and believable !!!

[Arun Pandiyan · Rating 5 out of 5]

Mr. Subbarao is Mr. Crisis.

At the time when India was going through a period of turbulence amid the global financial crisis in 2008 and when Indian economy was labelled as 'fragile five', Subbarao was given the herculean task of leading the Reserve Bank of India (RBI) and rest was history. This book is a personal account of Mr. Subbaro and his days in RBI as governor. Prior to this, he was actively engaged in civil service as district collector and finance secretary of Andhra Pradesh government and other national economic divisions.

Often times, the signature of the RBI governor on the currency note left me wondering why it is written that the governor is promising the bearer a sum of certain rupee and what does that promise actually mean? In this book, Mr. Duvvuri Subbarao finally unravel those questions surrounding the RBI and the Indian currency.

While writing this personal account, Mr. Subbaro was subtle in his language while handling the political interference every RBI governor face during his tenure, while also being apolitical to the core with his choice of words. His witty humor while explaining the struggle he underwent in educating the general population why interest rates are being reduced or why RBI can't print more money to make everyone rich shows us his nature of being public-spirited. At same time, his argument on why RBI needs more autonomy and less political interference shows us how hard he can pack his punches. Of all the things in this book, what was really eye-candy is the way how Mr. Subbarao handled the less usage of heavy economic jargon and easily explaining it all to the layman who is reading with no academic background on economics. The explanations for Repo rate, Cost Reserve Ratio (CRR), Gold to value ratio, Microfinance institutions, Non Banking Financial Companies (NBFC) in this book were flawless and facile.

We have been taught and we subconsciously believe that the primary role of RBI is to print and distribute money, while this book clearly explains all the duties of RBI. In the chapter 'Demystifying the Reserve Bank', Mr. Subbarao nonchalantly explained the other roles of RBI apart from printing money. Mr. Subbaro had his fair share of struggles starting from his rift with Mr. P. Chidambaram early in his tenure to handling the Saradha Scam of West Bengal towards the end of his governorship. But, as he moves on from one problem to the other, he showcases his existentialist philosophy loud and clear that, every man is a creature of circumstances in which he is called upon to perform. In course of his existence, he has to make choices and decisions based on his learning and past experiences. Hence, man is condemned to be free. And also, there are no second chances in life.

[Parag · Rating 4 out of 5]

When it comes to RBI Governors, all we can think of is either Manmohan Singh or Raghuram Rajan. If there were a scale to measure the personality evolution of central bank Governors in India, both of them would represent the ends of the scale. People seldom talk about the ones in between. Duvvuri Subbarao, 22nd Governor of RBI, came to the helm amid one of the most severe recession of modern times. His book mostly revolves around the time from 2008 to 2013 and gives a gist of the development that took place. I have broken down the review based on some of the important events in the Book:

• From North Block to Mint Road: Being the Finance secretary to the PM's office, his appointment as the RBI governor came as surprise to most in the speculation market.It was the PM who had convinced Chidambaram to consider Subbarao as the Economic Advisor earlier on. It was Chidambaram's turn to nudge the PM this time.
• Baptism by Fire: There was hardly any transition time between jobs for Subbarao. With just a few days in office, he had to face the Global crisis of 2008. The ripples of the meltdown were felt in most devoloped economies. India, however, remained immune to the otherwise global pandemic. Therefore,some credit of India coming out unscathed must be given to Subbarao. His tenure endured stiff challenges. Soverighn crisis of EU,Rupee Tantrum, Import Export Balance, Taper Tantrum
• Inflation Targeting:RBI, over the year, has worked on a more holistic kind of approach without focussing too much on single metric. Hence when the subject of engineering the monetary policy based on an inflation target was brought up, Subbarao was forthright in his stance. He suggested that such a framework would not ensure economic balance as seen in New Zealand during the 90's. Several studies were carried out under the aegis of Urjit patel (another RBI governor) who eventually suggested to peg monetary policy against inflation. India, under the leadership of PM Modi eventually brough the inflation targeting framework into effect
• Rupee Tantrum (read as falling rupee), Taper tantrum (slowing down of the Quantitaive easing program), Gold Reserves, being at loggerheads with the Govt on inflation and price stability were some of the highlights of his career where he had to manage market expectations while also doing the right things

[Ravi Kumar · Rating 4 out of 5]

“what it does affects the everyday lives of people across the country—from the prices they pay in the market, the interest they earn on their bank deposits, the interest they pay when they borrow from a bank, like, say the size of the EMI (equated monthly instalment) they pay on a house loan. It affects how much foreign exchange they can take out to spend or invest outside the country, say, for medical treatment or to educate a child abroad, and how the government pays for new roads, schools and hospitals.”

“Why is it important that a central bank have autonomy in setting the monetary policy? The principal aim of monetary policy is to preserve price stability by maintaining low and steady inflation consistent with the economy’s potential growth rate. This requires taking a long-term view even if the path to price stability might entail some short-term pain. But political regimes, especially democracies, have little tolerance for such pain; electoral politics push them into compromising long-term sustainability for short-term expediency. This is where an autonomous central bank comes in. The hope and expectation is that an autonomous central bank, insulated from political pressures, will ensure that long-term macroeconomic stability is not held hostage to short-term compulsions.”

“There are several considerations that go into the design of a currency note, such as reflection of the culture, history and ethos of the nation, a pleasing and appealing look and feel, sensitivity to the needs of differently abled people, particularly those with vision deficiencies, and amenability to mechanized processing. An overriding consideration, of course, is to make counterfeiting difficult and expensive.”

“The TERI report found that plastic currency would be about five times more environment friendly than cotton fibre-based currency mainly because of the longevity of the notes and low-resource consumption”

Excerpt From
Who Moved My Interest Rate: Leading the Reserve Bank Through Five Turbulent Years
Duvvuri Subbarao
This material may be protected by copyright.

[Anjana Unnikrishnan · Rating 4 out of 5]

The book begins with the Author, a generalist career civil servant, poised to take on the mantle of the Cabinet Secretary - the topmost position for someone from his rank and file. Instead, his experience as Finance Secretary puts him in the running for the Governor of RBI. After the Govt chooses to put him at the helm over someone with years of experience in RBI, he is portrayed as a man who at a critical juncture of his life, chose the "Road less Travelled". Thus begins the story of how he took on the markets and the Govt, a rookie trying to steady the economy during the worst of times - the global financial crisis of 2008. He has certainly tried his best in explaining multiple factors that go into decision-making at RBI and its domino effect on everything else in India. He takes care to mention the constraints under which he was operating - the frequent run-ins with the Govt and the business class clamouring for a rate cut, the strained relationship with the then Finance Minister, the all-time high inflation, the lack of adequate data and much more. It certainly wouldn't have been easy for a Generalist civil servant to take up the specialist role of RBI Governor at a time when even the mightiest of economies were spiralling down. And it most definitely wouldn't have been easy to be succeeded by the ever flamboyant Raghuram Rajan, who was the darling of the masses and the media. Evidently then, the book takes on the defensive position with regards to its author's decisions, while highlighting some of the positives of his tenure. While the author's simplicity and integrity is well-appreciated, the book at times reads like a long array of excuses which is a put-off of sorts. Otherwise, the writing is lucid and detailed, at times dwelling romantically on the prestigious institution of RBI along with the nitty-gritty of decision-making. Recommended for those who take a keen interest in Indian economy.

[Saurabh Goyal · Rating 5 out of 5]

Public institutions in India are, by and large, uninspiring and moribund. But RBI stands as an exception. Why is this so ? Why the same pathology that debilitate other public institution does not diminish RBI? 'Who Move MY Interest rates?' is answer to that question.

The Book is suffused with modesty, dignity and brilliance. The books does many things. One, D Subbarao lays out complex economic debates in simplest possible terms. Two, it locates RBI and Indian economy in the complex and volatile global economic scenario. Three, it is suffused with personal experiences of Subbarao. They bring grace and lightness to the whole story which risked being too technical.
And finally, and most interestingly, the book explains the relationship between finance ministry and RBI. Though both institutions converge on the idea of long term, sustainable and inclusive growth objective, but they differ on tactics and timings. Democratic Politics incentivises pomp and expediency. This is not the fault of politicians. It is rather institutional flaws in democratic politics. Subbarao grants that fact to finance minster. But he does not yield an inch of ground when it comes to serving his Dharma as a RBI governor.

Coming from a civil service background, Subbarao was suspected to toe political line set out by political masters. But RBI gave him his new Dharma. It involved standing your own ground even to the chagrin of politics. And that explains the success of RBI as an institutions. It could take a career civil servant and teach him to stand his ground even against those who appointed him.

Societies are upheld by strong institutions. So we are lucky to have RBI. But Institutions are by themselves inanimate. They are maintained by the force of those who inhabit them. So RBI is lucky to have had People like Subbarao.

[Abhijit Joshi · Rating 5 out of 5]

An onslaught of memoirs by former central bankers have hit the shelves this year - YV Reddy, Duvvuri Subbarao and now by Raghuram Rajan. While all three have had their share of ups and downs, I believe what makes Subbarao's time at the helm unique is that he faced a constant, see-sawing economy - the GFC when he entered, a period of constantly high inflation thereafter and two currency scares towards the end. As such, it's interesting to see what his interpretation is about the role he played during these crises.

The first thing that strikes you when you read this book is that this guy is honest - he will state facts as is. He has not shied away from admitting what have been widely acknowledged are his failures - hesitant responses to situations which required muscular handling, lack of personal communication etc. He has mentioned, mostly in a lucid and simple manner, about the various situations that he had to deal with and his thinking when he formulated his response to the same. During each of these situations, the dilemmas, the choices and his actions have been articulated well. However, he does come across as a tad too defensive when talking about his more controversial actions - but this would be the case in any memoir I would guess. I also think his use of jargon was a little over acceptable levels.

He touches upon his equation with the finance ministers (Chidambaram and Pranabda) and with the PM (MMS) (and with the government, broadly) briefly - but in the limited context that he has mentioned these interactions, he has not shied away from calling a spade a spade.

All in all, a decent and whole account of a public servant at the top of a venerated institution. Highly recommended for anyone seeking to understand a bit more about an institution which is so poorly understood in matters of normal public discourse.

[Arunkumar Ramanathan · Rating 4 out of 5]

My reading instinct bought this book after I saw an article by Subbarao in Hindu newspaper ,where he had explained the RBI functions in a simple and effective manner.The success of this book is that Subbarao made me love RBI as he had took me along with him in his crisis management as RBI governor with his authentic narrative.I also felt that Subbarao was honest and bold in strongly establishing RBI as an autonomous ,accountable and credible institution.One can derive more insights on crisis management irrespective of their industrial background.

Another interesting part is that Subbarao was someone who did not succumb to political pressure and worked in the larger public interest as he was not willing to compromise RBI’s autonomy at any cost.Subbarao is not a flamboyant Governor but I loved his unflinching resilience and boldness in managing the crisis situation.I also admire his Intellectual vulnerability and humility in openly admitting his shortcomings especially the way he had handled media communications and realised the scope for improvement.

The role of RBI and government to work jointly to steer the country at macroeconomic level is super critical for the sustainable growth of the country.Both stakeholders need to work together without giving up their autonomy especially RBI.At one point in time,I felt like RBI is made as a scapegoat if economy is not doing well and if banks are breaching the norms and not truly living up to their standards.

The crux of the RBI function is managing the constant tension in the contest between inflation and growth.As expected,this book is not heavily loaded with technical jargons which made my life easier and also helped me to grasp the concept and the outcome is that I had thoroughly enjoyed reading this book.If you want to learn about RBI and its functions at a fundamental level,then this book is highly recommended.

[Prashant Gupta · Rating 5 out of 5]

It is always a pleasure reading the ex-bureaucrat or any govt official books as it gives the inner and first-hand experience of what went into the minds of some of the most talented people in the country. The book by the ex-RBI governor is refreshing in terms of the content and language. Mr. Subbarao explains some of the mandate given to RBI namely Inflation, Currency stability among others. He is open to point out his differences with the then Finance Minister Chidambaram but he has kept the other FM Pranab Mukherjee and Prime Minister Manmohan Singh in high regards.

Topics like Global Financial Crisis, Global economic scenarios, working of IMF, WB, G20, and other institutions are also given a good coverage. At domestic front, the author talks about Inflation, Currency, Growth, the never-ending tussle between RBI and Finance Ministry regarding rate cuts (interesting to note that the author served in Finance Ministry as the secretary), Financial literacy, Banking and NBFC regulations.

Mr. Subbarao is all in praise for the RBI staff and senior management especially the communication department and also focuses on the importance of relevant and precise communication as a governor and as an institution itself.

On a negative side, he could have focused more on the political side of his role as a governor working with some of the finest politicians as the reader gets only a fine print of what is mentioned in the book but arguably it is understood that he is still ripe for any plum government jobs.

The book is a quick read and must for the finance & economics enthusiasts to know the working of one of the best and "independent" institutions in India and the role of the author in handling high Inflation and Global Financial crisis of 2007-08

[Virendra · Rating 4 out of 5]

The book is an in-depth study of how the RBI overcome with the financial crisis of 2008 & its aftermath, under the leadership of former RBI governor Duvvuri Subbarao. The book provides details on many actions taken by RBI, like Pumping the rupee liquidity in the system, by reducing the repo rate to 3.25% from 8% gradually, followed by a reduction in CRR & SLR etc. India was surely hit by the financial crises because from 1998-99 to 2008-09, the global integration of India was increased from 20% to 40% respectively.

He also talks about how MGNREGA caused an inflationary situation in the Indian economy, how the Monetary Policy Committee (MPC) was formed, & before MPC, how the monetary policy was decided. There are details on how the actions of US (like Quantitative easing)  & other advanced economies affected India. Former RBI Governor also talks about how & on what basis RBI decide what quality of currency to be printed, his initiatives to demystify RBI & its policy’s impact on the daily lives of people.

He also provides details on the miscommunication spread by media regarding the RBI & its policies & his struggle to keep that off the table. There is in-depth information about the various scams including pyramid schemes/Ponzi scheme scams, NBFC scams, gold value risk & various steps taken to reduce them. By the end, the books talk about international institutes like World Bank & IMF. What are their roles & how they contribute to the global economy?

All in all, this books is a must read by that individual, who has a keen interest in knowing how India survived the financial crises of 2008 & Who wants to know how RBI function for nation’s welfare.

[Dhruv Goel · Rating 5 out of 5]

Duvvuri Subbarao takes you through his Governorship of RBI. Other than the masterful reminiscing by acclaimed Dr. Subbarao, the book is also interesting because of the time it covers. The period is marked by the Global Financial Crisis, the Taper Tantrum, and the exchange rate crisis for the rupee. If you think it will contain a lot of esoteric terms and economic concepts, fear not, such elements are avoided as far as possible and have proper explanations wherever such terms are used.

Any non-fiction book that concentrates only on the issue at hand tends to bring sleep to the reader's eyes. There will be hardly such occurrences as one gets to revel in biases of big players and controversies, peppered throughout the book, as told by an important member of the policy circles. In large part, the author has presented his time as governor in a personal tone, which helps in identifying with the protagonist as he takes up the biggest responsibility of his life.

Chapter 2 (Baptism by Fire) and Chapter 7 (Rupee Tantrums) are fairly crucial for any economics enthusiast as they cover major macroeconomic upheavals that India faced after liberalization. I made notes from these accounts of the author as they were reasonably detailed and taught me new aspects that were missing from traditional readings of those events. Especially the way he argued with Chidambaram during the exchange rate crisis episode, how higher repo rates are not affecting investments but why the crowding out of funds by government spending is constricting already short supply of funds for private investments.

[Nikhilesh · Rating 5 out of 5]

There is a buzz every time RBI announces its guidance policy or alters interest rate. I'd wonder whether the fuss around its periodic meetings match its impact on the markets. I picked up this book for exactly this reason and my evergreen interest to know how bureaucracy works in India.

This book, released in 2016, must have been quite revealing back then as it provides us with fair amount of inside information about the struggles of Mr. D Subba Rao to help RBI maintain its independence. All the recent controversies about RBI and its autonomy seem normalized after reading this book.

Mr. Rao gives us an insight into various aspects of RBI and unlike his UPA bosses doesn't let his writing focus on fiscal dominance in monetary policy. He takes us through policy briefing aspects, impact of every word spoken by RBI Governor on markets, initiatives to promote financial literacy, currency troubles and introspects about his decisions while presenting us with the dilemmas he had to face.

If you are armed with knowledge of basic economics and fair understanding of economic jargon, this book will be a refreshing read.

[Maulik Munshi · Rating 5 out of 5]

I am only a finance enthusiast (not a professional), trying to grab a better understanding of many things in the finance and economic space - one of them being interest rates. Subbarao puts the reader at ease specifying his target audience is anyone with some inquisitiveness and lives it up in his writing- lucid, storified and at the same time insightful. Is a book on economy in 2008 to 2014 not stale now…well, not at all, it was worth the time reading it and is relevant.

Anyone who lived through and was aware of what was happening in the 2008 to 2014 years around the world of business should read this work. The ex Governor has taken pains to explain the workings, the setup, the pressures and the relevance of RBI in the context so plainly that it was a pleasure to absorb the book.

No one could have explained interest rates vs inflation in such a lucid way and yet kept the narrative simple. It gave a glimpse into the world of an IAS officer and more importantly the role of RBI vis a vis government, the tensions and pulls and pushes one goes through.

So many years after the era, it’s surely relevant and feels fresh if you knew the news of the time

[Aashish Satyajith · Rating 4 out of 5]

The book seems like an exposition of everything that Subbarao wanted to say during his tenure, but couldn't. Despite that fact, it's worth listening to.

The book does give a lot of insight into the machinery of the Indian economy, and what the related institutions have to do to keep it stable and running. Another big plus that I like about the book is that it gives a lot of detail as to how India maintains its economic relationship with the outside world.

The book is not an easy read however, and is not something that you might want to read at leisure. At times the book just says if X is the problem, then Y is the standard solution, without going into the details of why it works as a solution. You're expected to take that for granted.

If you're willing to do a lot of Googling, read up background information, dig up what makes certain strategies tick, and all, this book will be a great read. If you're looking for something light, give this one a pass.

[Girish · Rating 4 out of 5]

If you want to get a holistic understanding of what RBI did during 2008-2013 tumultuous period of the Indian Economy, then this is the book for you.

The way Subbarao sir has explained his job, actions, thought process behind them, results, and retrospective advices is perfect. His journey of these 5 years is relatable to us as we often comes along many challenges in our life for which we are often unprepared. And the way he handled then is something of which every Indian should be proud of.

He intricately explained his friction with the government in a bid to save RBI from government control. Although, he came from the government to become the RBI governor, he performed his role with utmost integrity and stood against government when needed.

This is a book which shows you how exactly an RBI governor does his job and what all he face.

A must read for those who want a detailed understanding of RBI and how it performs it's duties in the wake of unprecedented challenges.

[Rama Bhandare · Rating 5 out of 5]

Mr. D Subbarao was the governor of Reserve Bank of India, who was known for leading the central bank at a time critical and turbulent marred with 2008 financial crisis and the exchange rate fluctuations during the period of 2008-2013.

He is also known for standing up against any undue pressure from the government and doing what was right for the economy.

His book is a dignified and bared it all account as things progressed during his tenure without any sensationalism.

His views and insights on public policy are really note worthy and so much to learn from. His aim to let more countrymen know how the work of Reserve Bank affects their daily life and encouraging financial literacy in India.

[Samyak Jain · Rating 5 out of 5]

Great book on Economics 101. 😂
No I am just kidding but not kidding.

Basically it gives you such a detailed knowledge of the working of global economy through the lens of the reserve bank of India, that you start seeing economics through a larger viewpoint.

I learnt about 3 main topics:
- interest rate management with respect to inflation
- global financial crisis of 2008-09
- managing of currency values

There are a ton of other things I learned through this book. Would highly highly recommend it to anyone who wants to learn in depth about global economics in simple words. Especially coming from such an experienced person who experienced everything first hand.

[Pruthvi · Rating 5 out of 5]

This books gives a very detailed inside account of how things operate inside a central bank. Though the narrative style may seem bland sometimes, the former governor of Reserve Bank of India put together an honest memoir. He makes an effort to keep the language simple with minimal use of jargons. He runs us through various challenges he faced ranging from global financial crisis to independence of central banks and how he handled them. He clearly explains his thought process and dilemmas. A must read for people in finance and banking.

[Rishabh · Rating 4 out of 5]

Subbarao is a good writer and it is evident by this book. The language used is easy but with rich vocabulary.
He talks about his life as an IAS and then as governor of RBI. The explanation of various economic situations was made in a way that a person with basic understanding of the subject will be able to enjoy and learn. It gets tedious somewhere in the middle but regains the momentum again.
Its a good read, worth the time and money. I was surprised by Subbarao's writing skills. The book is not academic and provides interesting insights of how indian and international system works.