Raghuram Rajan: Competitive monetary easing – is it yesterday once more? Remarks by Dr Raghuram Rajan, Governor of the Reserve Bank of India, at the Brookings Institution, Washington DC, 10 April 2014. *  *  *  These are my personal views. I acknowledge very useful comments from Joshua Felman, Prachi Mishra, Jonathan Ostry, Michael Patra, Eswar Prasad, and Tharman Shanmugharatnam.
By reflecting market moves, fair value accounting certainly increases the volatility of reported earnings. Whether it contributes pro-cyclically to market volatility depends on the behaviour of management.