The question met with "ooh" from a panelist and a wide roar of applause from the audience. Rajan, clearly impressed by the question, forgot to put on his glasses which he picked up after Rajas finished his question. He smiled and answered,"It's a great question."
"Its a great question," Reserve Bank of India's governor Raghuram Rajan started his answer with even as smile spread across his face when an 8th standard student -- Rajas -- from a school in suburbs of Mumbai asked him when will India reach a stage when its monetary policies will affect the world with intensity.
Rajas' question was, "The mere rumour of the US cutting down on the federal stimulus saw the rupee crash in value. When will see an Indian affecting other countries so intensively?"
The question met with "ooh" from a panelist and a wide roar of applause from the audience. Rajan, clearly impressed by the question, forgot to put on his glasses which he picked up after Rajas finished his question. He smiled and answered,"It's a great question."
Rajan, then began a his answer by saying, "I have been saying that the US should worry about the effects of its policies on the rest of the world. So, if I stood by that, we should not be very happy down the line when Indian policies affect rest of the world adversely. We would like to live in a world where countries take into account their policies on other countries and do what is right broadly rather just what is right given the circumstances of their country."
Rajan couldn't stop himself from admiring Rajas' question again and began the second part of his answer by saying, "Great question." He went on to say ,"My guess is by the time you (Rajas) are old enough to get a job, we (India) will be a significant force in the world economy. We are a country that has kept its borders relatively open and is opening up even more. So, flows (money) in and out will be important and will have a lot of influence on the world. I suspect, by the time you are my age we will be one of the two or three great economies in the world and you as central bank governor will have to decide the kinds of policies that are appropriate for the world and not just for India at that time."
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