Western Govts Must Do More To Revive Economies: RBI Governor
Advertisement
Advertisement
Reserve Bank Governor "My colleagues in industrial countries are trying too hard (to revive their economies), and I would prefer monetary policy to do less and other parts of the economy, including the political system, to do more. If we try too hard, then we raise the probability of a crisis," Rajan said.
In an interview given to the London-based Central Banking Journal last week, Rajan had warned of a global crisis as a result of an asset price crash due to the cheap money.
"We are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost," Rajan warned.
He also expressed apprehension that central banks "may be exhausting room on the financial side and creating a situation where there will be a discontinuous movement in financial sector."
Advertisement
"Instead of the political system taking action, reforming the economy, etc, as industrial countries also need reforms, they are relying on the monetary authorities to provide whatever boost that was required. I thought this was dangerous because monetary authorities across the world are boosting asset prices rather than real activity," he said.
Advertisement
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit
- Unemployment among Indian youth is high, but it is transient: RBI MPC member