Great Depression of the 1930s may emerge again: RBI governor
Posted on: 27/Jun/2015 11:00:15 AM
RBI governor Raghuram Rajan while addressing the `perspectives` conference organised by AQR Asset Management Institute at the LBS campus on the subject of `the central banker perspective asked central banks from across the world to define "new rules of the game" as he warned that the global economy may be slipping into problems similar to the Great Depression of the 1930s.
He while speaking said, “We need rules of the game in order to affect a better solution. I think it is time to start debating what should the global rules of the game be on what is allowed in terms of central bank action. I am not going to venture a guess as to how we establish new rules of the game. It has to be international discussion, international consensus built over time after much research and action. But I do worry that we are slowly slipping into the kind of problems that we had in the thirties in attempts to activate growth. And, I think it`s a problem for the world. It`s not just a problem for the industrial countries or emerging markets, now it`s a broader game."
