Now central bankers must ease monetary policies in response to populist mistakes for which they themselves will be blamed
In recent years many central banks changed their communication approach, shifting from Delphic utterances to a policy of full transparency. But since the crisis, many of their public forecasts of growth and inflation have missed the mark.
That these might have been the best estimates at the time convinces no one. That they were wrong is all that matters.
This has left them triply damned in the eyes of politicians:
they failed to prevent the financial crisis and paid no price;
they are failing now to meet their mandate;
and they seem to know no more than the rest of us about the economy.
That these might have been the best estimates at the time convinces no one. That they were wrong is all that matters.
This has left them triply damned in the eyes of politicians:
they failed to prevent the financial crisis and paid no price;
they are failing now to meet their mandate;
and they seem to know no more than the rest of us about the economy.
Raghuram G. Rajan Procect Syndicate 31 July 2019
Raghuram Rajan, one of the few economists to see the financial crisis coming,
wins the Financial Times and Goldman Sachs Business Book of the Year award
FT 28/10/2010
Raghuram Rajan, one of the few economists to see the financial crisis coming,
wins the Financial Times and Goldman Sachs Business Book of the Year award
FT 28/10/2010
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