NEW YORK, Sept 26 (Reuters) - Policymakers around the world lack the monetary and fiscal fire power they possessed in 2008 to fight a renewed global slowdown, India’s top central banker said on Monday.
Central banks and governments today ”have no fire power left: governments cannot raise fiscal stimulus and central banks have exhausted most conventional and unconventional“ policies,” Duvvuri Subbarao, governor of the Reserve Bank of India, said during a question-and-answer session following a speech at New York University’s Stern School of Business.
Complicating matters further, Subbarao said, is the different stages of the business cycle seen in major world economies. Emerging markets such as India are still growing at a healthy clip while Europe, Japan and the United States are growing more slowly. (Reporting by Steven C. Johnson; editing by Leslie Adler)