India’s Resilience Against an Impending Global Slowdown

On 12^th September, the European Central Bank reduced deposit interest rates and approved bond purchases and a fresh stimulus package to boost euro zone growth. The step taken by the ECB highlights the contingent global slowdown that is staring at the world economies and which is characterized by lower growth rates and subdued demand across the major economies. Apart from the ECB, many other economies have also taken similar steps to boost their economies as depicted in the figure.

Such quantitative easing is expected to result into short-term bounce back of equity markets; bond purchase by central banks would lease more ....