Wednesday, August 07, 2013

Raghuram Rajan, next RBI governor

Seems to be a good choice. Some links from FT Alphaville like Why India Slowed indicate what Rajan will try to do "If all goes well, India’s economy should recover and return to its recent 8% average in the next couple of years."
From a 2012 interview "You need austerity because government debts have blown out too much, but you do not want to have that level of austerity that you get riots on the streets and the economyitself is paralysed. This means that government spending has to be targeted very, very effectively at the weaker segments of society --- the elderly, the people who are in real need -- so that the economy does not implode and people suffer tremendously."

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