Governor Rajan argued that capital flows pushed into EMEs due to ultra-accommodative monetary policy in source countries tend to increase local leverage not only through cross-border banking flows but also through appreciating domestic currencies and escalation in asset prices.
It must be reformed from the bottom up. All parts and parcels of global finance together have not delivered the stability that citizens rightly demand. Thus, significant improvements must be introduced everywhere. We owe this to the citizens and to the whole world. Have central banks not been able to prevent this crisis?