Moreover, U.S. monetary easing also stimulated foreign GDP by depressing foreign bond yields and raising the prices of risky assets. Of course, there were considerable differences in how foreign economies were affected by the Fed’s policies. Because the advanced foreign economies (AFEs) also experienced slow growth after the financial crisis, their central banks adopted similar policies.
The Reserve Bank of India considers both of them as our special and lasting friends. I am also thankful for the opportunity provided to me to share my thoughts on monetary and regulatory policies. At the outset I would like to underscore that the critical word in the title is “balance”.