Mumbai: Reserve Bank of India on Sunday said that a section of the press has “mis-characterised governor Raghuram Rajan’s remarks at the AQR conference at London Business School on June 25, as saying “the world is at risk of a Great Depression”.
On Thursday, Dr Rajan was quoted or misquoted by a news agency as saying that the global economy was “slow slipping into a Great Depression-like problems of the 1930s and asked the central banks across the world to define the rules of the game to find a solution.”
In its clarification, RBI, however, said that “what Dr Rajan said was that the policies followed by major central banks around the world were in danger of slipping into the kind of beggar thy-neighbour strategies that were followed in the 1930s. He then called for new rules of the game in the international monetary system, a call that he has made before, and is gaining some traction.” The RBI governor had made this statement off his written text and reports of this purported statement had caused consternation and confusion ever since it was reported.
