On the other hand, in a global market awash with liquidity and on the promise of India's growth potential, foreign investors were willing to take risks and provide funds at a lower cost.
It is a solution to the time dynamic inconsistency problem, where the expectations of economic agents are shaped by the actions or inactions of the central bank in the delivery of its mandate. In Africa, the time dynamic inconsistency problem is made worse by fiscal dominance and inadequate central bank operational autonomy. 15.