RBI governor Raghuram Rajan said the monetary policy of various central banks push capital into emerging markets and create difficulties for them.
RBI governor Raghuram Rajan said the monetary policy of various central banks push capital into emerging markets and create difficulties for them. “What we are seeing is a global game of musical crises,” as the economic crisis is now threatening export dependent emerging economies.
He took the IMF to task for not questioning these stimulus policies but applauding them from the sidelines. Lashing out at the IMF he said it had failed and that’s why countries are going in for regional arrangements instead of approaching multilateral agencies. Approaching the IMF now carries a stigma because of its failures in Argentine and other countries and now Brazil.
He said unless demand and production increases in the developed countries growth will not pick up. But wealth is in the hands of the rich “and after they have their first jet and yacht, what other demand do they have,” He called for transfer of wealth from the rich to the poor.
