Rajan wants global rules of conduct for central banks

Mumbai

RESERVE Bank of India (RBI) governor Raghuram Rajan called for global central banks to adopt a system for assessing the wider impact of their actions, including unconventional monetary policies now in use.

Mr Rajan proposed on Saturday that a group of academics should measure and analyse the "spillover" effects of monetary policies and indicate which should be used and which avoided. He suggested a traffic light system, grading policies green, orange or red.