If you are an emerging market, a small boat in a turbulent ocean of policy and environment emerging from elsewhere, what do you do? For us in emerging markets even to talk about fiscal rectitude becomes very hard because immediately they point to IMF that even the IMF doesn’t talk about fiscal rectitude. So, in that sense it creates an entirely new environment for the central banks. And second, that the industrial countries are themselves debating the orthodoxy, which then means even they don’t believe in that. Second, something we are ourselves responsible for in the central banking community, the statement that we can do it.

Source: Mint July 03, 2016 13:18 UTC