Time to Reverse Policies that Don’t Work

.........Inadvertently, the RBI’s liquidity squeeze has further scared foreign equity investors about an expected plunge in corporate earnings and debt investors on a rise on bad loans and defaults. On the other hand, the hypothesis that easy liquidity was fuelling rupee speculation was true only to a limited extent. Today, the Indian economy is a lot more externalised than most policymakers perceive.............

Read - ET