Global Economy Slowly Slipping Into Great-Depression Like Situation Of 1930’s: RBI Governor

27 June, Mumbai

Global economy is slowly slipping into Great Depression-like problems of 1930s, RBI Governor Raghuram Rajan has warned, asking central banks from across the world to define ‘rules of the game’ to find a solution.

Rajan, who is among the few to have predicted the 2008 financial crisis, said the problem was a broader one and for the entire world, not just for industrial countries or emerging markets.

The former IMF Chief Economist, who has earlier warned against competitive monetary policy easing by central banks globally, said the situation is different in India on this front and RBI remains more focused on bringing down the lending rates to spur investments.