The RBI Governor, Raghuram Rajan, has very good credentials to talk about the state of the global economy. A former chief economist of the IMF, Dr. Rajan is among the very few who foresaw the great financial crisis of 2008 triggered by the collapse of the iconic investment bank Lehman Brothers. His performance at the RBI needs no major elucidation. Taking over the stewardship of the central bank at a difficult time, he managed to stabilise the macro-economy fairly quickly.

All these as well as his academic credentials ensure that his views and comments on the global economy would be listened to with more than ordinary interest. This explains why a speech delivered at an academic forum, the London Business School, should have such a tremendous impact on the financial markets that the RBI subsequently sought to “moderate” the tenor of the speech............Read more

Source: The Hindu