The implications of monetary policy in developed countries for the developing world have been a key theme at the G-20 meeting of world finance ministers and central bankers in Australia.
Rajan said he had a good relationship with Fed chair Janet Yellen and that he had spoken with her about a more “collective” approach to monetary policy.
“Janet and I know each other, I respect her greatly… And I don’t think we are talking about something that she doesn’t already know [emerging market volatility.] We are talking about how we should collectively address these issues and communicate with markets,” he added.
Rajan told CNBC he welcomed the notion of tapering but central bankers needed to acknowledge the spillover effects of their policies.
“The only thing I have been calling for is in the communication there should be some sensitivity to emerging markets,” he added.