Baptism by fire

..........Given the old IMF prescriptions of monetary and fiscal tightening, in east Asia and now Europe, have been discredited since—the IMF’s current chief economist did a major mea culpa when he published a paper arguing IMF’s short-run austerity policies in Europe probably worsened growth—it is to be hoped Rajan will be more pragmatic since there is little doubt interest rates play a major role in stimulating growth and, in turn, curbing supply-side inflation. Rajan’s A Hundred Small Steps in financial reform is equally important and suggests a Governor in sync with what real reforms are needed, ................

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