#72 Should Courts Make Social Policies?🎧

This newsletter is really a weekly public policy&#160;thought-letter. While excellent newsletters on specific themes within public policy already exist, this thought-letter is about frameworks, mental models, and key ideas that will hopefully help you think about any public policy problem in imaginative ways. It seeks to answer just one question:&#160;how do I think about a particular public policy problem/solution?<br/><br/>PS: If you enjoy listening instead of reading, we have this edition available as an audio narration courtesy the good folks at&#160;<a href="https://www.ad-auris.com/">Ad-Auris</a>. If you have any feedback, please send it to us.<br/><br/>India Policy Watch:&#160;Rajan-Acharya on PSB Reforms<br/><br/>Insights on burning policy issues in India<br/><br/>&#8212; RSJ<br/><br/>Raghuram Rajan and Viral Acharya have a new paper titled, <a href="https://faculty.chicagobooth.edu/-/media/faculty/raghuram-rajan/research/papers/paper-on-banking-sector-reforms-rr-va-final.pdf">Indian Banks: A Time To Reform?</a>, that looks at a comprehensive set of reforms that will enable public sector banks to drive the Indian economic growth engine instead of being a drag they currently are. Rajan and Acharya have held leadership roles at the RBI and know a thing or two about issues relating to the banking sector. <br/><br/><a href="https://www.bloombergquint.com/business/no-escaping-hard-task-of-making-indian-banks-robust-rajan-acharya">Here&#8217;s a nice summary of the recommendations by the </a><a href="https://www.bloombergquint.com/business/no-escaping-hard-task-of-making-indian-banks-robust-rajan-acharya">BloombergQuint</a>.<br/><br/>So, what to make of them? <br/><br/>There are 4 points we&#8217;d like to raise:<br/><br/>Is this the time? Rajan and Acharya argue maintaining status quo is untenable. The huge strain on government finances now shifts the Overton window for much-needed reforms of the public sector banking system. This is their hope. In my view, shifting the status quo at this time carries the risk