Our strategy must consider countervailing effects from the monetary policies of both the US and China
Indian economic administrators and bankers have their eyes fixed on Washington as they await the US Federal Reserve’s next action because it is bound to have spillover effects on India’s economy. The entire global economy is also on a cliff’s edge as it waits for the Fed to start pulling its levers. India was stung by similar actions by the US central bank in 2013, and might therefore be doubly cautious this time. But, in focusing just on the Fed, we might be ignoring another emerging epicentre of an imminent global geo-economic and geopolitical storm.