Uneasy exit from easy money policy

Abstract

Indeed, UMP, analysed according to conventional wisdom, is in a mess. Probably the advanced nations are at a cusp of a new economic cauldron as the exit would not be easy. Well, for sure, emerging markets should brace themselves for higher capital flows.

In India, which has been facing the brunt of loose monetary policy of the advanced countries for more than a decade, there has been a discussion on exit policy of the US. YV Reddy, former Governor, RBI, has been talking about the need for a sound exit strategy since 2008. A strategy on how to get out when you go to a war has been missing in UMP. I am reminded of a young Abhimanyu caught in the Chakravyuha, a few thousand years ago, and it was not a happy situation. Read more at: http://archive.indianexpress.com/news/column-uneasy-exit-from-easy-money-policy/1121871/3