Rajan has his work ‘cut-out’ for him

Raghuram Rajan has been nominated Governor of the  Central Bank of India. The chart below illustrates the Indian economy from an MM perspective.

Some months ago Lars did a post contesting an Indian economist who was mistaken about market monetarism and NGDP level targeting: “India needs market monetarism”

Rajan is a finance guy and is unlikely to do well as a central banker. But I hope I´m wrong.

Here´s a link to some RR pieces for Project Syndicate.