The experience of the global financial crisis and now the Eurozone crisis has taught us that even as we benefit from integration, because of that very integration, we become vulnerable to global shocks.
The turbulence originated in advanced economies and among global financial centres, provoking coordinated actions by several leading central banks. Liquidity is being provided by leading central banks in ample measure, at relatively softer terms, for longer duration than ever before. Despite prevailing assessments regarding inflationary pressures, the concerned central banks are perhaps indicating softer interest-rate regimes thus inciting fears of stagflation.