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William Pesek

A Banker Buys India Too Much Slack

Raghuram Rajan, India's central bank chief, helped stabilize the nation's economy when he took over almost a year ago. The new prime minister, Narendra Modi, hasn't taken advantage of the opportunity. 
Stability that breeds complacence.
Stability that breeds complacence.

Raghuram Rajan may be too good a central banker for India's own good.

Of course, the stability the Reserve Bank of India governor has bestowed on Asia's third-biggest economy is a good thing. When he started the job 11 months ago, the currency was plunging and markets were betting the country would be the first BRIC -- Brazil, Russia, India and China -- downgraded to junk. Today, those risks seem very distant -- and that may just be the problem.