 "Rajan says monetary policy 'rules of the game' need review")
Global economic powers need to reassess what's acceptable in monetary policies, Reserve Bank of India Governor Raghuram Rajan, said on a panel discussion in Washington.
"We really need to assess our rules of the game": Rajan said."In the past, direct currency intervention was a no-no," he said, adding, today, monetary policies that have direct or indirect effect of moving currencies are accepted, because they're seen as needed to boost growth domestically regardless of spillover effects.
The IMF, he said, needs to play more of a role in judging policy, "not allow the fig leaf of monetary intent" to determine whether a policy is good or bad.
"We really need to assess our rules of the game": Rajan said."In the past, direct currency intervention was a no-no," he said, adding, today, monetary policies that have direct or indirect effect of moving currencies are accepted, because they're seen as needed to boost growth domestically regardless of spillover effects.
The IMF, he said, needs to play more of a role in judging policy, "not allow the fig leaf of monetary intent" to determine whether a policy is good or bad.