Mumbai: Onus promotes sustainable investment must lie with the government and not a central bank, who already has a significant policy commitment, said Raghuram Rajan, a former Governor of the Bank of India (RBI).
Central banks must stay away from politically moved areas such as “green” investment, because their mandates in the provision of financial and monetary stability are quite extensive, Rajan told Reuters Global Markets forum on Wednesday.
“Ask the central bank to say you have to buy only green bonds, not chocolate bonds, etc., ask the central bank to impose its own view of something especially a fiscal problem,” he said.
Rajan, who previously served as chief economist for the International Monetary Fund (IMF), said the central bank would contradise to change their focus on this green investment financial stability and other threats such as Crypto and Cyber’s security.
Crypto’s currency has a “potential future,” especially stablecoin which is well regulated, said Rajan, but it is not clear what fundamentals support their assessment other than the “heon environment,” with monetary policy that easily triggered all asset prices.
Crypto will not be your “last choice” in the Doomsday scenario, he said.
“I will be much more confident about this Crypto value as soon as they find the right use cases,” such as effective payment methods, especially in cross-border transactions.
In Trackrajan, which is a financial professor at the University of Chicago Stooth School of Business, does not expect the market to react in the 2013 “Taper Taperrum” as the US Federal Reserve launched his plan to attract stimulus, which he said could not happen in Jackson hole on Friday.
“Ideally, the Fed wants to observe as long as possible, (and) …
make sure that the economy is well on the track to growth, he said.” Of course, the problem is the Delta variant, plus any variant that happens.
Hiding in the background.
“He expects inflationary pressures in the United States to be temporary, but said prices can continue to increase longer than expected due to strong wages, unavailability of workers, and additional fiscal stimulus steps.” The company is quite confident to pass through price increases …
they don’t do that until they think that this higher price is to stay, “said Rajan.
Refer to India, Rajan said inflation there could increase in hidden requests, producing supplies congestion The side, but the demand will fall in the medium term because the households are depressed and the economic grated network of pandemics.
Central banks in many developing countries become proactive and raise interest rates, said Rajan.
“Now, R BI (Reserve Bank of India) Watching data and it will make a decision when it must make it.
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The central bank should not be a ‘green’ investment mandate: Rajan
