Monetary Policy and Its Unintended Consequences

A call for an end to aggressive monetary policy and a return to smart growth from an eminent researcher and former central banker.

Central banks took extraordinary measures to stabilize markets and enhance growth after the financial crisis of 2008, but without giving much thought to the long-term consequences. It was a response, Raghuram Rajan argues, that set a dangerous precedent: the more centrals bank did, the more they were expected to do, and the more they ended up doing. Monetary Poli...