‘Central banks of developing economies need to be explicit,transparent with price stability prime objective’

He said the maintenance of price stability at a level considered appropriate by the Central banks was,perhaps,the best approach. “By maintaining price stability,a Central bank can pave the way for the fulfilment of other objectives as well over the medium term.”

Dr Rangarajan made this suggestion in his inaugural address at the 93rd Annual Conference of the Indian Economic Association (IEA) being held on the Panjab University on Monday. More than 3,000 delegates from all over India and abroad are participating in the three-day event.

Dr Rangarajan said there was a raging debate going on currently on whether the present financial crisis in the West was precipitated by monetary policy failure or regulatory failure. He,however,said those who argue that the crisis was triggered by regulatory failure point to lax regulation and supervision which led to increased leverage,regulatory arbitrage,and less due diligence in loan origination.

Dr Sukhadeo Thorat,Chairman,University Grants Commission,and Professor of Economics,Jawaharlal Nehru University,New Delhi in his presidential address stressed the need to modify the nature of the growth to make it more pro-poor and formulate policies to make farm and rural non-farm growth more pro-poor. He said there was also a need to strengthen the present pattern of agricultural growth by increasing the support and incentive for small and marginal farmers. The per unit growth in agriculture brings greater decline in poverty or self-employed poor farmers than poor non-agricultural households engaged in non-farm production and business,he added. The strategy for inclusive growth in the Eleventh Plan,he said,is not just a conventional strategy for growth but it is a strategy which aims at a particular type of growth process to meet the objectives of inclusiveness and sustainability.

Earlier,the Panjab University Vice-Chancellor Prof R C Sobti in his welcome address informed the distinguished guests and delegates of the outstanding achievements of the university and its remarkably high ranking status globally (387 among 500 leading educational institutions) and nationally in scientific research (number one in India).

V-C did not miss the opportunity to seek funds: Known for his acts of requesting for funds from representatives of funding bodies,Prof R C Sobti before the conclusion of the inauguration ceremony,took control of the poduim and asked Sukhadeo Thorat,UGC Chairman and President IEA to release remaining funds out of Rs 362 crore. “The university is ready to enhance the seats for Other Backward Classes (OBC) as per the norms of centrally funded universities. The expansion of 40 per cent (20 for OBC and 20 per cent for general category) will be started the moment we get a draft of Rs 362 crore. As already out of the total 54 per cent 14 per cent reservation is already provided in the university.,” requested Prof Sobti.

Sidelights

Like mindedness reflected in clothes too: The delegates including C Rangarajan,Chairman Economic Advisory Council to the Prime Minister,Sukhadeo Thorat,Chairman University Grants Commission (UGC) and President Indian Economic Association (IEA),Dr Anil Kumar Thakur,Secretary and Treasurer IEA along with other delegates,all seemed to represent their like mindedness in their appearance too. This was attributed to the Vice-Chancellor who came up with an innovative idea of honouring all of them with souvenirs along with off white coloured coats and blue striped neck tie.

Audience lost interest : Most of the members in the audience were seen taking a nap while the address speeches were being delivered during the inauguration and also a long list of books were released by the guests.