Trilemma that felled RBI governor

Rarely has an outgoing RBI governor been castigated as much as Duvvuri Subbarao. The criticism is overdone. One group of critics, typified by Surjit Bhalla, says he kept interest rates far too high, hitting investment and competitiveness. The second group, typified by Shankar Acharya and Arvind Virmani, lambasts him for permitting real appreciation of the rupee during 2009-11. They say this killed exports and created the big current account deficit of 4.8% of GDP in 2012-13.

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