Reserve bank of India (RBI) Governor Raghuram Rajan is known as a brilliant economist and as a financial analyst as well. While he attended the 14th KP Hormis Commemorative Lecture in Aluva, Cochin, he was asked a question by a student and his answer was brilliant.

He just wowed everyone with his perfect and clear knowledge of economics to the question. The student asked him why the price of Dosa is going on increasing but not at all decreasing when there was no inflation in the economy.

Mr. Rajan’s answer was clear and his explanation of Balassa-Samuelson effect. He then gives the brief note about why Dosa prices never go down.

The way Mr. Rajan explained the fact was crystal clear for everyone. It seems to be if he were to teach economics to students, everybody would be an economist for sure.