The prospect of a global slowdown has increased after the lockdowns put in place by most important economic engines of the world. Global central banks have responded, often going to unprecedented lengths, supplemented by large fiscal stimulus measures.
India’s economic environment is being shaped by an adverse confluence of four Cs: Credit, COVID, crude and confidence. The previous fortnight was especially impacted by the lockdown, which will affect payments, transactions, credit flows and increase market volatility.
Given the limits of fiscal stimulus, monetary policy, in its increasingly liberal interpretation, has assumed the role of primus inter pares in the multi-dimensional measures. The
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