Two Key Aspects Missing from Raghuram Rajan's Proposal

Vitor Constancio, European Central Bank: Rajan's proposal is missing two aspects: consideration of what would have happened if economies had not pursued these policies after 2009 and negative output gap in advanced economies.

On April 10, the Hutchins Center on Fiscal and Monetary Policy at Brookings hosted Raghuram Rajan, India's central banker to discuss emerging markets' perspective on advanced-economy monetary policies, a subject on which he has been very outspoken lately. Responding to Gov. Rajan's remarks was Charles Evans, president of the Federal Reserve Bank of Chicago; Vitor Constancio, vice president of the European Central Bank; Alexandre Tombini, governor of the Central Bank of Brazil; and Eswar Prasad, the New Century Chair in International Trade and Economics and a senior fellow in Brookings' Global Economy and Development program.