Raghuram Rajan Interview – Noteworthy Comment

A June 17 2010 Raghuram Rajan interview contained several interesting viewpoints.

While I don’t necessarily agree with what he says in this interview, I found it to be well worth reading.

Of particular note was the following comment, which I found provocative – if not very much so – and thought-provoking, as its implications, if the statement is true, are rather far-reaching:

“We have long understood that it is not income that matters, but consumption. A smart or cynical politician knows that if somehow the consumption of middle-class householders keeps up, if they can afford a new car every few years and the occasional exotic holiday, perhaps they will pay less attention to their stagnant monthly paychecks.”

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