An economic emergency has been declared in the US—no, not by the Bush administration, but by Paul Krugman, writing in his New York Times blog.

There is much in the US economy that is truly scary: the relentless fall in share prices, a spurt in borrowing costs for companies and households, early signs of deflation, job losses and a bombed-out financial sector.

India is far better placed, even though the troubles here are mounting. But it is interesting to see that Bharatiya Janata Party leader L.K. Advani, too, has said this week that India could face an economic emergency soon. Some of this is political posturing, but it is sensible to prepare for further deterioration in the economy.

That will mean two things. One, the government needs to come up with a coherent policy plan to replace the ad hoc moves and statements that we now see.

And those in the Opposition need to realize that there is a time for confrontation and there is a time for consensus. Scoring minor debating points against political opponents can wait for another day.