View: India must spend, but cannot ignore taper tantrum

It’s a Catch-22. Leave the liquidity glut unattended, and foreigners may chase overpriced Indian equities. Withdraw it, and watch carry traders pile in. Both kinds of speculative bets will eventually unwind, setting the rupee up for a hard fall.

from Economy-News-Economic Times https://ift.tt/3ckX3XN
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