Former Reserve Bank of India (RBI) governor YV Reddy said he was sure of 2008 economic crisis and it was a battle of ideologies back then.
"I became sensitive to the impact of global factors on the domestic economy when I was ED at International Monetary Fund (IMF)," said Reddy.
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“After I joined as governor, in a couple of years I realised that there are global imbalances and they should be warned,” he added.
Its ten years since the powerful investment bank, Lehman Brothers filed for bankruptcy. The global financial markets lost 60 percent of their value, global economy contracted by 5 percent, an estimated 8.8 million jobs were lost and $19 trillion of household wealth was wiped out.
Reddy finished his term as the RBI governor just ten days before the Lehman bankruptcy.
“In 2002-2003 I saw the suffering of Turkey, Argentina, Brazil and Mexico so then on I felt that the most important thing for emerging market economies is to be very conscious of the risk from the global economies,” he said.