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In a world with weak aggregate demand, countries are…

“In a world with weak aggregate demand, countries are engaging in a futile competition for a greater share of it. In the process, they are creating financial-sector and cross-border risks that will become increasingly apparent as countries exit their unconventional policies.” quote by Raghuram Rajan
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“In a world with weak aggregate demand, countries are engaging in a futile competition for a greater share of it. In the process, they are creating financial-sector and cross-border risks that will become increasingly apparent as countries exit their unconventional policies.”

Raghuram Rajan

About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Countries chase larger market shares, creating financial and cross‑border risks that will surface as policies normalize.

In simple terms: Pursuing growth can create hidden dangers.

Key Takeaway

Balance competition with coordination.

Themes

economics risk globalization

Mood

cautious analytical

Type

economic critical

When to use this quote

  • budget planning
  • regulatory reforms
  • investment strategies

Key Concepts

Financial stability policy coordination

Questions to Reflect On

  • What mechanisms can mitigate these risks?
  • How to align national policies?
A Different Perspective

Risk may be overstated in some markets.

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