Economies: Central Banks Playing With Fire In Growth Push, Says 'Reserve Bank Of India Governor Raghuram Rajan'
The "specter of deflation" is spurring the world's major central banks
into a dangerous struggle for stronger domestic growth that imperils
financial markets and ignores the needs of developing nations, the head
of India's central bank said on Tuesday.
Reserve Bank of India Governor Raghuram Rajan, making a familiar
argument for better global coordination on monetary policy, said central
bankers in developed economies should bear in mind their international
responsibilities.
"The current non-system in international monetary policy is, in my view,
a source of substantial risk, both to sustainable growth as well as to
the financial sector," Rajan told an audience of economists and
investors in New York.
"I fear that in a world with weak aggregate demand, we may be engaged in
a risky competition for a greater share of it," he added. "We are
thereby also creating financial sector risks for when unconventional policies end."
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