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Policymakers around the world lack the monetary and fiscal fire power they possessed in 2008 to fight a renewed global slowdown, Reserve Bank of India governor Duvvuri Subbarao said on Monday.

Central banks and governments today "have no fire power left: governments cannot raise fiscal stimulus and central banks have exhausted most conventional and unconventional" policies," Subbarao said during a question-and-answer session following a speech at New York University's Stern School of Business.

Complicating matters further, Subbarao said, is the different stages of the business cycle seen in major world economies. Emerging markets such as India are still growing at a healthy clip while Europe, Japan and the United States are growing more slowly.

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