Rajan, you've spoken about disruption extensively this week, what have you identified as the next likely disruption facing financial markets? Well, interest rates are going to normalize.
With this strong growth around the world, we're gonna see central banks withdraw the tremendous accommodation that they've put into the markets, which means that they will have to watch how this process evolves as they normalize monetarypolicy, as the leverage that has been built up, is that going to prove a sourceof disruption? So, I think they're gonna do this cautiously, but they are in the process of withdrawing accommodation.
And as a former policy maker yourself, how do you recommend that policy makers factor disruption into their decision-making? It's a very difficult thing to do.
Well, I think they have to keep an eye on the possible sources of disruption, but they have to be determined in the fact that we need to exit after 10 years ofcentral banks being the only game in town.
They can't afford to be the only game in town.
They have to let others take uptheir burdens, and this is why exit is important, but cautiously.
Thank you very much.