Customers often value a good more when its price goes up. One reason may be its signaling value. An expensive handcrafted mechanical watch may tell time no more accurately than a cheap quartz model; but, because few people can afford one, buying it signals that the owner is rich.

Raghuram Rajan

Raghuram Rajan

Accurately Afford Because Buying Cheap Customers Expensive Few Few People Goes Good May Mechanical Model More Often Owner People Price Reason Rich Signals Tell Than Time Up Value Watch

Related Quotes

The few emerging economies that have avoided booms and busts have done so by adhering to sound policy frameworks.

— Raghuram Rajan

AvoidedDoneEconomies

Very few people can afford to be poor.

— George Bernard Shaw

AffordFewFew People

Everyone may have some advise for the RBI. Some may advise, 'Cut your lending rates and raise the deposit rate.' How will a bank function? We take a medium term view. The bank has an 80-year-old history. I don't want to destroy it for a few decisions.

— Raghuram Rajan

Ultimately, in the long run we need to immunise our system from being overly responsive to fluctuations in the exchange rate; that is, people should, by and large, be reasonably hedged, or they should borrow more in domestic currency rather than foreign currency.

— Raghuram Rajan

BeingBorrowCurrency

There are very few people who have done more than one Christmas album.

— Isaac Hanson

AlbumChristmasDone