Rajan flags pitfalls of short-term thinking
RBI governor stresses need for prudent policy from government and central bank
India should not abandon its efforts to achieve macroeconomic stability, even amid this period of "global turmoil", Reserve Bank of India (RBI) governor Raghuram Rajan said today (January 29).
Critics have been calling on the central bank to loosen its monetary policy and the government to ease back its programme of fiscal consolidation, but Rajan warned this was a dangerous path.
He cited the example of the Brazilian government, which he said pressured its central bank to cut rates and
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