Surplus liquidity in the system: How it came and how it may go4 min read 15 Dec 2021, 10:46 PM IST
A complex set of economic conditions would be needed for India to attain normalcy on this count
When the US Fed started its quantitative easing (QE) plan, it was to make liquidity available at a time when every institution was suspicious of the solvency of the other, as it was unclear how toxic their assets were. To help, the Fed bought other bonds apart from US treasuries.
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