Bottom line Quote by Raghuram G. Rajan
““The bottom line was that the scheme was a measured risk, with a probability that the RBI would lose money, a certainty that the bankers would make money, but also a reasonable chance that the country would be significantly better off.””
About This Quote
Source Speech: Remarks at RBI Annual Conference, 2015
The plan involved a calculated risk where banks profit, the central bank may lose, but the nation could gain overall.
In simple terms: Risk taken for national benefit despite possible losses.
Key Takeaway
Weigh systemic gains against individual losses.
Themes
risk
economics
policy
tradeoffs
Mood
cautious
analytical
critical
Type
policy
economic
financial
When to use this quote
- banking reforms
- government budgeting
- investment decisions
- public policy debates
Key Concepts
probability
certainty
public good
Questions to Reflect On
- Is the potential national benefit worth the guaranteed loss for the RBI?
- How can policymakers ensure equitable outcomes?
A Different Perspective
Assumes the gain outweighs the loss, which may not hold in practice.
