markets spike, as the same foreign investors pull their money back.
Charles Evans, president of the Chicago Federal Reserve was also critical of Rajan’s position. Seated with Rajan on the stage, ECB vice president Vitor Constancio too voiced his opposition. “I would not subscribe to the criticisms,” he said, noting that emerging economies were much closer to full employment than rich nations. Constancio said past efforts at global coordination failed in part because emerging economies refused to accept that their currencies would have to appreciate in the face of policy easing in developed world.