The International Monetary Fund has countered the Reserve Bank of India’s Raghuram Rajan’s views that the world economy may be slipping into 1930s Great Depression-like problems, and said that monetary policy easing alone can’t be blamed for a financial crisis, DNA reported. Rajan, former IMF chief economist was one of the few people who had correctly predicted the 2007 financial crisis, has incited a debate among policymakers and economists with his warning against “competitive monetary policy easing” by central banks around the world. Speaking at a London Business School (LBS) conference on Friday, Rajan said that there was a need for central banks to sit together and define new “rules of the game” to find a better solution to deal with the situation.
