In an exclusive interview to NDTV, Nobel economist Joseph Stiglitz said if America had a central bank chief like YV Reddy, the US economy would not have been in such a mess.

The former RBI governor Y V Reddy is credited with creating flexibility in the monetary policy that did not led to a buildup of a bubble in the Indian economy unlike that in the US.

During his stewardship of the RBI, he took a number of measures so that Indian real estate market stays healthy. He put a number of checks on banks to de-risk their exposure from the property sector, including increasing the risk weightage for the bank’s lending to the realty sector.

His other measures like timely increasing the key rates also helped to cool the economy from overheating. In contrast, his US counterparts kept the rates low enough to keep the subprime bubble developing. 

“If India would have listened to Treasury Secretary Hank Paulson and gone in for full market liberalisation and followed American practices, you would've been exposed to higher risk," he said, while adding that every successful economy is market economy.

"Some of the things your central bank has done like the things that Governor Reddy did were right. If we had Governor Reddy we wouldn't be in such a mess,” he pointed out.

According to him the coordinated global fiscal and monetary response is extremely important to battle global crisis. He is also of view that there was a need for a global regulatory authority.