Monday, April 18, 2016

India's Unusually Wise Central Bank Governor:
Central Banks May Be Doing 
More Harm Than Good
"My sense is industrial countries’ central banks should probably consider whether they are doing more harm than good by easing further. I don’t think the benefits beyond a certain point have been that clear, and certainly the costs of staying in this ultra-accommodative phase for much longer will build up – the known costs – and then there are less-known costs. How much are we, with these policies, preventing adjustments that should take place. I know this has got a bad name, it is the 'liquidationist' or 'Austrian' view, but it is a very real question of whether we’ve allowed the adjustments to take place enough or whether we’re keeping too many inefficient firms alive."
- Raghuram Rajan*
LINK HERE to the interview transcript

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