Need to avoid beggar-thy-neighbour policies: Raghuram Rajan
January 08, 2016 11:35
RBI Governor Raghuram Rajan has said there is need to avoid beggar-thy-neighbour policies and sustained exchange-rate intervention that primarily induce capital outflows and competitive currency devaluations.
"In an ideal world, the political imperative for growth would not outstrip an economy's potential. In the real world, where social-security commitments, over-indebtedness, and poverty will not disappear, we need ways to achieve sustainable growth.
"Above all, we need to avoid beggar-thy-neighbour policies, such as unconventional monetary policy or sustained exchange-rate intervention, that primarily induce capital outflows and competitive currency devaluations," he said in an article in 'Project Syndicate'.
"In an ideal world, the political imperative for growth would not outstrip an economy's potential. In the real world, where social-security commitments, over-indebtedness, and poverty will not disappear, we need ways to achieve sustainable growth.
"Above all, we need to avoid beggar-thy-neighbour policies, such as unconventional monetary policy or sustained exchange-rate intervention, that primarily induce capital outflows and competitive currency devaluations," he said in an article in 'Project Syndicate'.
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