Reserve Bank of India governor Raghuram Rajan says the wider impact of global central bank actions should be assessed and graded
- Says a group of academics should measure and analyse the "spillover" effects of monetary policies
- Recommending those policies which should be used & those best avoided
- Suggested a traffic light system, grading policies green, orange or red
- Monitoring system could be implemented through an international agreement (like Bretton Woods currency accord or via the International Monetary Fund)
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I've a lot of time for Rajan, he seems a very sensible chap. But throwing more academics at the global economy is not an idea of his I can support. Maybe we need less input from central banks, too? Hmmmm?
