In this talk, Dr. Charan Singh argues that the Advanced Economies need to play a more responsible global role as their policy inaction during subprime, and agressive action after Lehman is impacting Emerging Market Economies rather badly. He argues that Regulators in the US faltered repeatedly which led to expansion in Balance sheet of Central banks and consequently inflation. Now, over tightening, in the current engineering of recession by sharply raising interest rates could disrupt banking, and credit growth. As during the great depression such initiatives will plunge the world in darker times.

Resources

Inflation threat overstated; India will continue to grow at steady pace

Interest rates: RBI should go easy on monetary tightening