......RBI, as usual, has been left holding the baby, as it is the case when anything goes amiss. It also runs the risk of facing the flak because every economic decision has a tradeoff, and some constituency gets affected. The latest buzzword is ‘collateral damage’ caused by too much intervention as bond yields have zoomed and the stock market has plummeted. The alternative would have been to do nothing and let the market decide the exchange rate, in which case the participants would have panicked in the expectation that RBI was targeting a higher number. The more uncharitable would have likened the state to that of Nero. Really, a hard choice to make under these circumstances........
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