Raghuram Rajan on Surging Gold and Growing Risks to Financial Stability

In a live episode of the Odd Lots podcast recorded at the Institute for International Finance annual meeting in Washington, D.C., Joe Weisenthal and Tracy Alloway interview Raghuram Rajan, a professor at the University of Chicago Booth School of Business and former head of India's Central Bank. They discuss the reasons behind the surge in gold prices, the distrust in the global financial system and potential alternatives to the U.S. dollar, and the risks Raghuram Rajan sees in the current market landscape, including the potential for a financial crisis due to easy monetary policy followed by tightening. They also explore the implications of the AI investment boom, the role of central banks in managing inflationary pressures, and the impact of political dysfunction on the independence of central banks. Finally, they touch on India's potential as a manufacturing hub and the challenges it faces, as well as the impact of tariffs on the Indian economy.