Big Mistake ignoring Rajan’s directives in 2005–IMF Chief

Showering fulsome praise on Raghuram Rajan, IMF chief Christine Lagarde on Tuesday said not listening to his prediction of 2008 credit crisis was a big mistake of the multilateral funding agency.

Rajan, now the Reserve Bank Governor, was the Chief Economist and Research Director at the IMF during 2003-2006.

He is credited with correctly forecasting in 2005 an impending global financial crisis at the annual meeting of prominent economists and bankers at Jackson Hole, US.

“The period when nobody was really forecasting the prices that what he did…thing that was one of his many-many accomplishments. One of the many drawbacks of the Fund was not listen to him enough at that time.