25 quotes found
"I refuse to start from the assumption that the role of monetary policy is to control and stabilize inflation. The only acceptable way to start is, I believe, to think of the goal of monetary policy, together with fiscal policy,as the maximization of welfare."
"Crises feed uncertainty. And uncertainty affects behaviour, which feeds the crisis."
"Using the popular macroeconomic models of the time, Lucas and Sargent showed how replacing traditional assumptions about expectations formation by the assumption of rational expectations could fundamentally alter the results.... Most macroeconomists today use rational expectations as a working assumption in their models and analyses of policy. This is not because they believe that people always have rational expectations. Surely there are times when people, firms, or financial market participants lose sight of reality and become too optimistic or too pessimistic... But these are more the exception than the rule, and it is not clear that economists can say much about those times anyway. When thinking about the likely effects of a particular economic policy, the best assumption to make seems to be that financial markets, people, and firms will do the best they can to work out the implications of that policy. Designing a policy on the assumption that people will make systematic mistakes in responding to it is unwise."
"Lucas and Sargent’s main argument was that Keynesian economics had ignored the full implications of the effect of expectations on behavior. The way to proceed, they argued, was to assume that people formed expectations as rationally as they could, based on the information they had. Thinking of people as having rational expectations had three major implications, all highly damaging to Keynesian macroeconomics. ... The first implication was that existing macroeconomic models could not be used to help design policy. … The second implication was that when rational expectations were introduced in Keynesian models, these models actually delivered very un-Keynesian conclusions. … The third implication was that if people and firms had rational expectations, it was wrong to think of policy as the control of a complicated but passive system. Rather, the right way was to think of policy as a game between policy makers and the economy. … To summarize: When rational expectations were introduced, Keynesian models could not be used to determine policy; Keynesian models could not explain long-lasting deviations of output from the natural level of output; the theory of policy had to be redesigned, using the tools of game theory."
"Not taking risks one doesn't understand is often the best form of risk management."
"On the retail side, I particularly want to emphasize the use of the unique ID, Aadhaar, in building individual credit histories. This will be the foundation of a revolution in retail credit."
"Promoters do not have a divine right to stay in charge regardless of how badly they mismanage an enterprise, nor do they have the right to use the banking system to recapitalize their failed ventures."
"Expectations are high. Clearly I am not a superman. There is a little bit of euphoria in India. I have a wife and two kids."
"If you are an outsider looking at India, learn to filter out both the irrational exuberance and the excessive pessimism. We're subject to both. You will become manic-depressive if you follow our moods."
"A 007 James Bond image is very dangerous for a central banker to have."
"Indeed, if what you do offends me but does not harm me otherwise, there should be a very high bar for prohibiting your act. After all, any ban, and certainly any vigilante acts to enforce it, may offend you as much, or more, than the offence to me. Excessive political correctness stifles progress as much as excessive license and disrespect."
"Improving the opportunities across the board is extremely important to sustain the legitimacy of wealth. If a whole horde of people, whole sections of society don't feel they have the opportunities, then the focus is going to be on those who have it and who have made it and say that is illegitimate."
"I think we have still to get to a place where we feel satisfied. We have this saying - "In the land of the blind, the one-eyed man is king". We are a little bit that way."
"If Rajan gets one more term you can safely say bye to all investment and therefore high growth in this country … he’s from [University of] Chicago so he is not fit for this country … there they believe that more free market the better but in India market failures take place and you’ve got to correct for that."
"Mr Raghuram Rajan is an outstanding man who understands central banking. He is probably only one in the world among the crowds of professors at central banks that actually has a good grip on monetary policies and what you can or cannot achieve with them. He should get the Noble Prize in economics but the others are all money printers at heart, all of them."
"Incidentally, the Reserve Bank of India (RBI) Governor, Raghuram Rajan, has single-handedly brought a huge slowdown to the Indian manufacturing sector and exports. As a doctor, he has believed that the best way to bring down the temperature of a patient (i.e., inflation) is to kill him (investment starvation)."
"It is through enabling the private sector that it will be possible to achieve this level of reach in terms of both job creation and broad economic impact."
"Given that the education system globally is constantly changing, this requires inclusive learning, and agile leadership for swift responses to remote learning and a digital-first curriculum, both requiring the engagement of the private sector."
"As the global economy is becoming increasingly knowledge-based, today, education and skills are more important than ever in securing a country’s future because investments in education provide a catalyst for economic growth, job creation, and increased social mobility, especially when it comes to supporting youth in vulnerable communities."
"We need to focus on education. The future of any country is heavily reliant on the output of its education system and what youth have learned to bring to the workforce."
"The reality is, in today's global environment, no country will be able to achieve long-term economic growth and development whilst neglecting the climate crisis:"
"Ultimately, upskilling is essential for young people to effectively contribute to addressing global challenges, equipping them with the skills, knowledge, and resources needed to drive innovation, create sustainable solutions, and make a positive impact in the world."
"Entrepreneurship and innovation, as well as access to technology, lie at the heart of public-private-youth partnerships, as this is a clear path to creating impactful progress, and brings creative and new ideas to the table. That’s how one can advance anything, be it on a small scale within a company or on a larger scale in terms of the economy."
"Gender equality and climate action are two pillars that have been adopted as cross-cutting priorities that will be mainstreamed across all Shabab Balad activities. This is a key priority for many of the rising entrepreneurs in the country and us."
"To recover, a key driver in our economy is the private sector. Enabling the private sector to grow and increase public-private partnerships in development projects, as well as creating a suitable environment for entrepreneurs and innovators to thrive and grow, is of high priority to the government, as this reflects positively on the economy."