Book Title: Who moved my interest rate?

Leading the Reserve Bank Through Five Turbulent

Year
Author: Duvvuri Subbarao
Originally published: 2016
Genre: Economic and Financial Literature
Dr. Duvvuri Subbarao's autobiographical work, "Who Moved My Interest Rate?" is an in-depth
account of Subbarao's tenure as the Governor of the Reserve Bank of India. The book is a
comprehensive read for anyone who wants to understand the impact of the 2008 global
financial crisis (GFC) on India and the RBI’s policy vis-a-vis economic concepts. Subbarao’s RBI
governorship from 2008 to 2013 was a particularly testing time for global financial markets.
Central banks worldwide faced multiple challenges as the 2008 crisis unraveled, creating deep
setbacks for financial markets and businesses. The book gives a very detailed narrative of the
dilemmas, and complexities the RBI faced during this period.
Right from the very first chapter, the storyline takes charge, bringing readers to the heart of the
crisis and highlighting an important global policy debate. Practitioners who have been around
may recall that the GFC created unprecedented financial uncertainty as Lehman filed for
bankruptcy in September 2008. Against this backdrop, G20 central bank governors and finance
ministers met in October 2008 in Washington DC. In the elite Washington gathering, Subbarao
apprised the audience of the many predicaments emerging markets bankers face and the
responsibilities that advanced economies have, particularly the United States, in making policy
decisions. For instance, easing policies at that time created volatile capital flows largely
impacting financial stability in emerging market economies.
The RBI’s crisis management strategies detailed in the book provide an action-oriented
understanding of the pressures and hardships RBI governors face. Most practitioners recognize
the effect policy levers have on the economy, like the repo rates, cash reserve ratio (CRR),
statutory liquidity ratio (SLR), and borrowing norms. But seeing the policy lever changes play
out as crises unfold, makes the book an interesting read. Be it the dynamics and factors
influencing inflation in the 2009 inflation surge or the capital flight and 2013 rupee
depreciation, Subbarao’s work is an analytical review of macroeconomic policies as well as
fundamental economic concepts. Ideological nuances in the RBI’s mandates and the
government’s priorities demonstrate the multifaceted nature of economic decision-making in
India.
"Who Moved My Interest Rate?" is an engaging and informative read. It provides readers with a
ringside view of the challenges and pressures inherent in crisis management. The book offers a
firsthand account of the economic governance skills required to steer an important developing
country's central bank. What particularly stands out in the book is Subbarao's calm leadership
during turbulent times. In the book, Subbarao eloquently reminds readers of the Chinese saying
– “May you live in interesting times”.