Monetary Policy and Its Unintended Consequences
Raghuram Rajan
Translated from English under the scientific editorship of Daniil Shestakov. — Moscow: Gaidar Institute Press, 2026. — 232 p.
ISBN 978-5-93255-717-4
In the wake of the 2008 financial crisis and the COVID-19 pandemic, central banks have increasingly intervened in the economy in an effort to stabilize markets and enhance growth. However, this policy has set a dangerous precedent: the more central banks did, the more they were expected to do, and the more they ended up doing. In his book, Rajan, a former governor of the Reserve Bank of India and one of the most authoritative economists of his generation, shows how these extraordinary measures led to inflation, volatility, and market dependence on regulatory support. This is a thorough analysis of the decisions made in response to the major crises of the 21st century, and an argument for central banks to return to their core mandates of low inflation and financial stability.
ISBN 978-5-93255-717-4
In the wake of the 2008 financial crisis and the COVID-19 pandemic, central banks have increasingly intervened in the economy in an effort to stabilize markets and enhance growth. However, this policy has set a dangerous precedent: the more central banks did, the more they were expected to do, and the more they ended up doing. In his book, Rajan, a former governor of the Reserve Bank of India and one of the most authoritative economists of his generation, shows how these extraordinary measures led to inflation, volatility, and market dependence on regulatory support. This is a thorough analysis of the decisions made in response to the major crises of the 21st century, and an argument for central banks to return to their core mandates of low inflation and financial stability.