Raghuram Rajan advierte sobre las fragilidades de la economía mundial

The transcript discusses the current economic situation, highlighting potential fragilities such as incipient inflation and financial sector vulnerabilities. It examines the impact of long-term accommodation on leverage and asset bubbles, particularly in bonds. The discussion also covers the challenges faced by central banks in identifying and addressing asset bubbles, emphasizing the importance of timely policy adjustments to prevent economic disruptions.

What are some potential sources of economic fragility mentioned in the first section?

• Technological advancements

• High unemployment rates

• Incipient inflation and financial sector vulnerabilities

• Trade deficits

What is a potential consequence of withdrawing economic accommodation too quickly?

• Stable asset prices

• Sharper price reactions

• Decreased inflation

• Increased employment

Why is it challenging for central banks to identify asset bubbles?

• Technological limitations

• Political pressure

• Uncertainty about which assets are overvalued

• Lack of data on asset prices

What was the impact of the 2001 stock market bubble compared to the subprime mortgage crisis?

• The stock market bubble had a larger impact

• The subprime mortgage crisis caused more upheaval

• Both had similar impacts

• Neither had a significant impact

What is suggested as a potentially wrong policy in the third section?

• Increasing quantitative easing

• Reducing government spending

• Standing pat and waiting for more activity

• Increasing interest rates