Rajan pitched for stronger and well-capitalised multilateral institutions having widespread legitimacy, some of which can also provide "patient capital".
"The current non-system in international monetary policy is, in my view, a source of substantial risk, both to sustainable growth as well as to the financial sector,” he said.
"It is not an industrial country problem, nor an emerging market problem, it is a problem of collective action. We are being pushed towards competitive monetary easing and musical crises," he added.
According to him, unconventional monetary policies include keeping interest rates at near zero levels and activities such as central banks purchasing assets in certain markets.
"I use Depression era terminology because I fear that in a world with weak aggregate demand, we may be engaged in a risky competition for a greater share of it. We are thereby also creating financial sector risks for when unconventional policies end," Rajan said.

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