Mumbai: With Raghuram Rajan's comments on 1930s-like problems resurfacing having created a flutter, the RBI has said the governor of the Reserve Bank of India (RBI) did not imply there being an imminent risk of the world economy slipping again into the Great Depression as that was caused by "many factors".
The RBI, however, added Rajan indeed said that "the policies followed by major central banks around the world were in danger of slipping into the kind of beggar-thy-neighbour strategies that were followed in the 1930s".
"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."