The Governor of the Reserve Bank of India has warned of another possible market crash. Coming from him, it has been widely reported. He attributes the risk of a crash to monetary policymakers trying to do too much to revive economic growth, through asset prices. None of this is new to many market participants. This blog has been saying it and my columns in MINT have been saying it. Many other commentators such as Tim Price, John Hussman and even hedge fund managers have been saying so for several months now, if not years. But, coming from him, it is a good thing.
NITI Central did an interview with me on his remarks and the impact on India should a market crash occur. Of course, there is a small error. The Governor did not mention ‘Great Depression’. I should have corrected the interviewer. Anyway, if you are interested, the 13-minute long interview is here.