World Economy

IMF Rejects Rajan’s Warning

IMF Rejects Rajan’s WarningIMF Rejects Rajan’s Warning

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.