Better coordination among central banks needed in times of crises: Raghuram Rajan

Rajan also questioned the monetary policy actions of central banks in developed countries in trying to boost demand and said that such moves could actually be having little impact along the lines intended.

Raghuram Rajan speaking about better coordination among central banks of emerging nations. Photo: IANS

Urging central banks in emerging economies to coordinate better at a time of crisis, Reserve Bank of India (RBI) Governor Raghuram Rajan said on Tuesday that many emerging markets have already been taking steps to help their neighbours.

"People need to work with each other and we need to figure out how to make this more part of the global structure" he said while delivering a lecture here at the London School of Economics, without naming any country in this regard.

Rajan also questioned the monetary policy actions of central banks in developed countries in trying to boost demand and said that such moves could actually be having little impact along the lines intended. "We are reaching the limits of what monetary policy can do.

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"We are still broadly in a situation where we think the problems are largely temporary and sufficient stimulus will get the global economy back on track," he added.

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