Thus Spoke Raghuram Rajan

I always read what Raghuram Rajan says with interest. He has often been dead right and remarkably prescient. Here is the full text of a speech he gave yesterday. It gives us a framework to think about economic matters for the next few years.

Make in India, Largely for India
(Talk delivered by Dr. Raghuram Rajan, Governor Reserve Bank of India at the Bharat Ram Memorial Lecture on December 12, 2014 in New Delhi)

The global economy is still weak, despite a strengthening recovery in the United States. The Euro area is veering close to recession, Japan has already experienced two quarters of negative growth after a tax hike, and many emerging markets are rethinking their export-led growth models as the industrial world stagnates. In the last couple of years, the IMF has repeatedly reduced its growth forecasts. After 6 years of a tepid post-crisis recovery, the IMF titled its most recent World Economic Outlook “Legacies, Clouds, Uncertainties”. Read more of this post