India’s Rajan Sees Risk of New Crisis on Loose Monetary Policies
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The world is at risk of another financial crisis as monetary stimulus in developed economies encourages investors to take risks and boost asset prices, Reserve Bank of India Governor Raghuram Rajan said in two interviews.
“We are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost,” Rajan told the Central Banking Journal. Global monetary authorities must coordinate more closely and create a safety net to protect developing countries and avoid a “merry-go-round” of perpetual crisis, he told U.K. newspaper The Times.