Raghuram Rajan advocates devolution of economic power to communities as a riposte to the spread of populism LOUAI BARAKAT/RexQuantitative easing does not work and central banks should be prohibited from using it, Raghuram Rajan, a former chief economist at the International Monetary Fund, has said. Mr Rajan, seen as a potential successor to Mark Carney as governor of the Bank of England, said it was his “strong conjecture” that QE “works by depreciating the exchange rate [and] stealing demand from other countries”. In doing so, it inflames international tensions without generating growth. “I think this should be off the table,” Mr Rajan said. Raghuram Rajan was rumoured to have been approached last year to succeed Mark Carney at the Bank of England Times photographer Jack HillMr Rajan, 56, has a…

Source: The Times March 11, 2019 17:03 UTC