It wouldn't be much of surprise if one asks question, the one who had seen/read about the crisis we had undergone in the year 1991, that, are we heading for another breakdown? What do you think? What i feel is, it would be nearly impossible to see the same kind of breakdown what we had witnessed in early 90's, given the sheer size of our economy and investors interest in India. But what worries me is our approach to the problem. We have a current account deficit which is ever widening, inflat...
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As you know, our government always wins a blame game, this time, they had put blame on US Fed bank quantitative easing programme. Let me brief about that stimulus programme. After sub prime crisis, Americans stopped spending their money, as they left with no money with them. Unlike, European and Asian economies, US economy had built on their citizens spending. As they stopped spending, growth started to see zeros and negatives. To boost up the spending, US fed bank had decreased the interest ...
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