World economy may slip to 1930s-like depression: Raghuram Rajan
August 7, 2015
The global economy is “slowly slipping” into Great Depression-like problems of the 1930s, Reserve Bank of India (RBI) Governor Raghuram Rajan has cautioned, asking central banks from across the world to define the “rules of the game” to find a solution. Rajan, among the few to have predicted the 2008 financial crisis, said the problem was a “broader” one and for the entire world, not just for industrial countries or emerging markets. The former International Monetary Fund (IMF) chief economist, who had earlier warned against competitive monetary policy easing by central banks globally, said the situation was different in India on this front, adding RBI was more focused on reducing lending rates to spur investment. “We need rules of the