The telecom war between Reliance Jio and Airtel was only a preamble to the impending battle between Google and Jio. Nitish Kumar broke the mahagathbandhan while seeming to try to bend RJD to his will. All the schmoozing between Trump and Xi hasn’t reduced the North Korean nuclear threat. Could we have predicted these outcomes before they actually happened? Yes we could have—not with IQ or EQ, but with ‘Game Theoretic Quotient’. A new intelligence, a new way of looking at the world. Game Sutra highlights the underlying strategic considerations of entities as diverse as heads of state, bitcoin miners and CEOs of internet companies to explain their decisive choices. Immerse yourself in its heady mix of cogent fact and smart analysis to develop your ‘game theoretic quotient’. Your world will never be the same again.
Chapter 30: The RBI and the Flip Flop Finance Ministry
The RBI and the Flip Flop Finance Ministry
Following high profile disagreements between the Reserve Bank of India (RBI) and the Ministry of Finance over the Centre's desire to limit curbs on lending and gain access to RBI reserves, the RBI Governor Urjit Patel resigned in December 2018. This chapter provides a game-theoretic explanation for central bank autonomy and positions the current conflict as a counterpoint to the creation of the liberal monetary policy framework in February 2015.55
Many argue that there is an inherent contradiction between accountability of the central bank to the executive and its autonomy from the finance ministry. In this context, the macro-economic literature on ‘time consistency of policy’ and the game-theoretic literature on ...