The alternative is the kind of virtuous circle that the economy has already experienced during the five years preceding the crisis period. This was characterized by low inflation, high investment and fiscal consolidation, particularly on the revenue account, accompanying high growth as well as resilience during the crisis period. That is the configuration that we need to re-create to sustain growth.
4  Reserve Bank of India (2002), “Growth, Inflation and the Conduct of Monetary Policy”, Report on Currency and Finance 2000–01. BIS central bankers’ speeches  5  Both monetary and fiscal policies have a role in achieving this configuration.