Central banks and governments of rich countries are running out of ammunition for stimulating their economies, says Raghuram Rajan, the head of the Indian central bank — but they can never admit as much.
Speaking to the Financial Times at the University of Chicago Booth School of Business in London, Mr Rajan criticised efforts to use fiscal and monetary policy and infrastructure programmes to boost growth rates in advanced economies.
Long a critic of low interest rates in rich countries that can drive hot-money flows to poorer parts of the world, the governor of the Reserve Bank of India suggested that loose policies were also weakening the underlying performance of advanced economies.
Although Mr Rajan said there were limits on stimulus, he said central banks “cannot claim to be out of ammunition because immediately that would create the wrong kind of expectations, so there’s always something up their sleeves”.
印度央行(Reserve Bank of India)行长拉古拉姆?拉詹(Raghuram Rajan)称，富裕国家的央行及政府正在耗尽刺激其经济所需的弹药，但是他们永远不会承认这一点。
曾经在芝加哥大学布斯商学院(University of Chicago Booth School of Business)执教的拉詹在伦敦接受英国《金融时报》采访时，批评了发达经济体利用财政和货币政策及基础设施项目来提振增长率的努力。