'Govts that don't respect central bank independence invite wrath of mkts'

Viral Acharya said governments that invest in central bank independence will enjoy lower costs of borrowing, the love of international investors, and longer life spans

RBI deputy governor Viral Acharya on Friday said that the governments that do not respect central bank independence will sooner or later incur the wrath of financial markets, ignite economic fire, and come to rue the day they undermined an important regulatory institution. Delivering the A D Shroff Memorial Lecture in Mumbai, he concluded by saying that governments that invest in central bank independence will enjoy lower costs of borrowing, the love of international investors, and longer life spans.

Here is the speech:

No analogy is perfect; yet, analogies help convey things better. At times, a straw man has