{"id":178721,"date":"2022-04-11T20:58:17","date_gmt":"2022-04-11T15:28:17","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=178721"},"modified":"2022-04-11T20:58:17","modified_gmt":"2022-04-11T15:28:17","slug":"red-lines-got-blurred-in-our-triage-of-mega-risks","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/red-lines-got-blurred-in-our-triage-of-mega-risks\/","title":{"rendered":"Red lines got blurred in our triage of mega risks\u00a0"},"content":{"rendered":"<p aria-level=\"1\"><\/p>\n<p><b><span data-contrast=\"none\">News<\/span><\/b><span data-contrast=\"none\">: For last two years, India has been witnessing the <\/span><b><span data-contrast=\"none\">fiscal and monetary expansion<\/span><\/b> <b><span data-contrast=\"none\">measures<\/span><\/b><span data-contrast=\"none\">. Recently, the Reserve Bank of India (RBI) has adopted a monetary policy. It aims to prioritize price-control or inflation in India.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">What is the meaning of shifting of red lines in the article?\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">It refers to a situation when the policymakers push limits beyond economic, geo and domestic politics during uncertain times.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">Why red lines have shifted and become blurred in India in last two years?<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">In India, the <\/span><b><span data-contrast=\"none\">ultra-loose policies<\/span><\/b><span data-contrast=\"none\"> have been adopted for providing relief amid pandemic.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The central banks have lent money at <\/span><b><span data-contrast=\"none\">negative real rates of interest<\/span><\/b><span data-contrast=\"none\"> for long periods. In addition, the lending charges have been below inflation.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The Reserve Bank of India (RBI) has also kept its repo rate at 4% for nearly two years.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">What measures have been taken by the RBI?<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">The RBI has given a new window for banks. Now, banks can deposit excess funds at 3.75%, without any collateral bonds.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<h5><b><span data-contrast=\"none\">What are the challenges in the coming period?<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/h5>\n<p><span data-contrast=\"none\">The <strong>retail inflation<\/strong> has increased. In fact, the price may flare up to an adverse level. The cautious steps need to be taken to sponge up liquidity.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">In the global theatre of geopolitics. The red line seems to be highly shifting in nature. The world has witnessed a number of <strong>geopolitical conflicts<\/strong> in last one decade. For example, Syrian civil war, Russian\u2019 annexation of Crimea, Russia\u2019s invasion of Ukraine 2022.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">In terms of politics, there has been a <strong>majoritarian shift in the domestic Indian politics.<\/strong> For example, after the 1992 demolition of the Babri mosque, the disputed Ayodhya site has been awarded for a Ram temple in 2019, and the citizenship act has created a lot of issues. So, it may impact the national bond and unity.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:true,&quot;134233118&quot;:true,&quot;201341983&quot;:2,&quot;335551550&quot;:6,&quot;335551620&quot;:6,&quot;335559740&quot;:420}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\"><strong>Source<\/strong>: The post is based on an article \u201c<strong>Red lines got blurred in our triage of mega risks<\/strong>\u201d published in the<strong> Live Mint<\/strong> on <strong>10<\/strong><\/span><strong>th April 2022.\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>News: For last two years, India has been witnessing the fiscal and monetary expansion measures. Recently, the Reserve Bank of India (RBI) has adopted a monetary policy. It aims to prioritize price-control or inflation in India.\u00a0\u00a0 What is the meaning of shifting of red lines in the article?\u00a0\u00a0 It refers to a situation when the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/red-lines-got-blurred-in-our-triage-of-mega-risks\/\">Continue reading <span class=\"screen-reader-text\">Red lines got blurred in our triage of mega risks\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-178721","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704938507},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/178721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=178721"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/178721\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=178721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=178721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=178721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}