 "FIIs pull out $2 bn this year, highest since 2008")
I have been concerned about some macro-solutions proposed to address the slowdown. Calls for fiscal stimulus are misplaced and would, without much sustained benefit, jeopardise the hard-earned macroeconomic stability attained since 2014. Monetary and credit policy transmission needs fixing, not further rate cuts. Using speculative foreign money for sovereign spending would raise risk without ameliorating the credit and liquidity situation.
At the present moment, the need is for the government to respond to an immediate and exigent situation in which, (1) there are problems of sentiment; 2) the credit pipeline to NBFCs and the banking system is choked; 3) a few
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