Reserve Bank of India’s Governor and former economist of International Monetary Fund, Raghuram Rajan, while speaking with Financial Times in London has warned against the fallouts of monetary and fiscal policies to stimulate growth.

Previously Mr. Rajan, a critique of low rates in advanced economies, due to their spillover effects globally, warned that advanced economies’ central banks trying to boost growth beyond a level, which may not be their current potential.

He said supports monetary stimulus for short period of time and as a tool to balance out any recovery. According to Mr. Rajan, economy automatically readjusts itself, while short term stimulus smoothen but when we have stimulus for eight long years and no recovery, then central bankers should ask if elsewhere lies the problem.

He suggested loose policy may be hurting the underlying performance of advanced economies and policies like “Helicopter Money” unlikely to help it.

Lower rates preventing inefficient companies from going out of business and delaying the adjustments required. Moreover, he stressed inflation could be measured wrongly at national level and prosperity is rising much faster than official figures suggest.

In criticizing fiscal policy Mr. Rajan, ,warned on the returns, economies, which have debt to GDP more than 100% should think about returns, if they are not high, could turn out as burden for the younger generations.