Gita Gopinath Quotes

I don’t attach any labels to myself and if I can be of any help to Kerala in terms of thinking about some of the economic issues there, provide my input which can be taken or discarded, I thought that would be a good thing to do.

GDP is a function of capital, labour and how productively you use both.

The biggest losers from international trade are always those whose skills have a cheaper competitor in a different market.

If a debt crisis results from government profligacy and mismanagement, rather than from a market failure, it is true that the central bank should not intervene.

Being born into a Malayali family that followed a matriarchal system, I always felt loved and had a high sense of self-worth.

Portfolio investment, often called ‘hot money’ because of its volatile nature, can increase the economy’s vulnerability to the vagaries of international finance. Foreign direct investment, on the other hand, is far more stable and driven by domestic fundamentals.

By promising to intervene in vulnerable markets in the event of excessive financial volatility, the IMF, as the largest player, would reduce coordination problems among investors.

The advantages of globalization are actually much like the advantages of technological improvement. They have very similar effects: they raise output in countries, raise productivity, create more jobs, raise wages, and lower prices of products in the world economy.

We need to realise that entrepreneurship is not necessarily increasing employment.

If people expect high inflation and raise wages to reflect the high inflation, then it becomes self-fulfilling.

I guess I am politically very naive.

Emerging market and developing economies have benefited from monetary easing in major economies but have also faced volatile risk sentiment tied to trade tensions.

If you waive loans, it will encourage everyone to opt for more as they think they can get away with it in future.

In reality, while currency movements can have a significant impact on inflation in other countries, dollar movements have rarely had a meaningful or durable impact on prices in the U.S.

An intensification of trade or geopolitical tensions – with negative repercussions for global growth and risk appetite – could affect economies that are highly dependent on foreign demand or external financing.

Where fiscal space is low, fiscal policy needs to adjust in a growth-friendly manner to ensure public debt is on a sustainable path, while protecting the most vulnerable.

Fiscal policy should balance growth, equity, and sustainability concerns, including protecting society’s most vulnerable.

The awareness has increased about the need to increase womenwomen participation in the workplace, but there are no amenities to assure that.

I am a trained economist.

I am purely a technocrat and I reject all ideological labels.

I think about issues. I use my economic training to devise solutions.

It is important for India to stay the course on fiscal consolidation.

There was never a perception that I was second-class relative to boys. That gave me confidence.

Recapitalization has helped in many parts of the world.

The idea that RBI will be able to make a big transfer to the government was misplaced. It was a very good signalling device that the government was very serious about cracking down on corruption and black money. But I do not think it was very effective in curbing it.

Having a proper understanding of countries’ external positions – current accounts, stock positions, and currencies – is critical to highlight policymakers’ shared responsibility to tackle external imbalances before they become too risky.

There is a need for greater multilateral cooperation to resolve trade conflicts, to address climate change and risks from cybersecurity, and to improve the effectiveness of international taxation.

To help resolve conflicts, the rules-based multilateral trading system should be strengthened and modernized to encompass areas such as digital services, subsidies, and technology transfer.

Fiscal policy is a very important part of the tool kit for policy makers.

Rather than waiting for a crisis to erupt before intervening, the IMF should provide ‘forward guidance’ on how it will tackle potential disruptions in international financial markets.

Unfortunately, governments do not have a philanthropic approach towards future governments.

Fiscal policy will need to manage trade-offs between supporting demand, protecting social spending, and ensuring that public debt remains on a sustainable path, with the optimal mix depending on country-specific circumstances.

Countries with fiscal space should invest in physical and social infrastructure to raise potential growth.

Monetary policy should remain data dependent, be well communicated, and ensure that inflation expectations remain anchored.

There are limits to how much countries can spend.