Raghuram Rajan suggests when the US Federal Reserve might start cutting rates, considers how to mitigate monetary policy spillovers, proposes measures to boost financial stability, and more
Raghuram G. Rajan Says More…Project Syndicate (PS): You have criticised monetary policymakers’ response to the 2008 global economic crisis, which had profound spillover effects to which they “paid insufficient heed”. In your new book, Monetary Policy and Its Unintended Consequences, you offer a “sketch of a model” showing how monetary-policy spillovers “cause leveraging,