The Reserve Bank of India issued an unusual statement Sunday. The institution wished to make it clear that a “section of the press” had mischaracterized remarks that Governor Raghuram Rajan had made three days earlier in London. “Governor Rajan did not imply or suggest that there was any risk of the world economy, which is in steady recovery notwithstanding uncertainties like those in the Euro area, slipping into a new Great Depression,” the statement said.
We owe the staffers that were forced to spend a segment of their weekend at the office to format that statement a debt of gratitude. Global economic news was bad enough as it was. A prediction from a respected economist and policy maker that things were about to get worse—much worse—would not have helped matters.
Greek Prime Minister Alexis Tsipras is either the most reckless politician on the planet or he is engaging in gamesmanship at a level few in financial markets can comprehend.
Continue reading ...