I Do What I Do: 8 key ideas
The core ideas of I Do What I Do, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
He arrived in a currency crisis
Rajan describes becoming governor of the Reserve Bank of India in 2013, when the rupee was falling sharply.
Quick measures, including a scheme to attract foreign deposits, helped stabilise it.
- IDEA 2 OF 8
Inflation hurts the poor most
Rajan argues that high inflation damages savers and poorer households.
He explains why the Reserve Bank focused on bringing it down, even when this was unpopular. Stable prices, he argues, protect everyone.
- IDEA 3 OF 8
A new framework for policy
Rajan describes moving toward a formal inflation target and a committee to set interest rates.
He argues this made monetary policy more predictable and accountable. Clear rules reduce guesswork for markets.
- IDEA 4 OF 8
Banks had to face bad loans
Rajan describes the Reserve Bank's push to make banks recognise their bad loans honestly.
He argues that hiding problems would only make them worse. Honest accounting was the first step to recovery.
- IDEA 5 OF 8
New banks increased competition
Rajan describes issuing licences for new kinds of banks, such as payments banks and small finance banks.
He saw these as ways to bring more people into the banking system.
- IDEA 6 OF 8
Finance should reach everyone
Rajan stresses financial inclusion, giving ordinary people access to bank accounts and credit.
He argues this helps people save safely and build better lives. Access to finance can transform lives.
- IDEA 7 OF 8
Debate strengthens a society
Rajan includes speeches arguing for tolerance and open debate.
He believes that free exchange of ideas is essential for economic progress. These speeches drew wide attention and some criticism at the time.
- IDEA 8 OF 8
Central bankers must explain themselves
Rajan's speeches show his belief in clear communication with the public.
He argues that explaining policy builds trust and understanding. He saw communication as part of the job itself. Clarity builds credibility.
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