Indian Economy is Very Vulnerable
Since December 2013 the US central bank Federal Reserve has decided
to scale back its dollar printing program called QE (Quantitative
Easing). The Indian economy is very fragile looking at these new
developments. Raghuram Rajan, the Indian central bank RBI's governor, has criticized the uncoordinated policy of the selfish
US Fed saying the withdrawal of stimulus by the Fed is rocking the
emerging market economies. Despite this, he is assuring the Indian
public that the Indian economy is quite resilient
and immune from any shock coming from the US central bank. In my
following economic report I call Raghuram Rajan's bluff and analyze the
impact of US Fed's tapering policy on the Indian economy.
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