Say More: An Interview with Raghuram G. Rajan

Rajan highlights rising monetary-policy risks, suggests how to prevent a “doom loop” of crises, and more The PS Say More Newsletter | [View this message in a web browser]( [PS Say More]( This week in Say More, PS talks with Raghuram G. Rajan, a former governor of the Reserve Bank of India and a professor at the University of Chicago Booth School of Business. To read the full interview – in which Rajan identifies economic-policy priorities for Joe Biden’s administration, highlights rising monetary-policy risks, and suggests how to prevent a “doom loop” of crises – [click here](. Raghuram G. Rajan Says More… Syndicate: In 2016, while you were serving as vice-chairman of the Bank for International Settlements (BIS), you [advocated]( a new set of monetary rules to “prevent a central bank’s domestic mandate from trumping a country’s international responsibility.” In your view, “policies with few adverse spillovers should be rated ‘green’; those that should be used temporarily could be rated ‘orange’; and policies that should be avoided at all times would be ‘red.’” During the COVID-19 crisis, have central banks implemented policies that you would classify as “red”? Are there “orange” policies that you worry will be upheld for too long? Raghuram G. Rajan: It is rare for a central bank... [Continue reading]( [How Much Debt Is Too Much?]( [How Much Debt Is Too Much?]( By Raghuram G. Rajan According to conventional wisdom, US President-elect Biden will The new conventional wisdom in these unconventional times is that advanced-economy governments can take advantage of today's ultra-low interest rates to borrow and spend without limit in order to support the economy. But the fact is that there is always a limit, and it may come into view sooner than many realize. By the Way... PS: At a 2005 gathering of leading economists in Jackson Hole, Wyoming, you [warned]( that unsustainable banking practices and risky financial instruments could lead to economic collapse. With your audience’s mood buoyed by rising property prices, your paper was met with a [chilly reception](. But, less than three years later, your warnings proved prescient. Have economists’ risk perceptions improved since then? What actions could improve them further? RGR: Much like generals, we economists... [Continue reading]( [Anatole Kaletsky]( Previously in Say More [Anatole Kaletsky]( – Chief Economist and Co-Chairman of Gavekal Dragonomics – highlights three reasons Joe Biden could govern effectively, offers a bleak outlook for post-Brexit Britain, and identifies the biggest investment risks on the horizon. [Read more](. [Check out the Say More archive]( [Grassroots Globalization]( Project Syndicate publishes and provides, on a not-for-profit basis, original commentary by the world's leading thinkers to more than 500 media outlets in over 150 countries. This newsletter is a service of [Project Syndicate](. [Change your newsletter preferences](. Follow us on [Facebook]( [Twitter]( and [YouTube](. © Project Syndicate, all rights reserved. [Unsubscribe from all newsletters](.