Apropos Rajiv Shastri's article "Hard truths about QE" (May 9), the basics of unconventional monetary measures have always been questionable because of the unintended results and externality it creates. Thus, the debate between Ben Bernanke and Raghuram Rajan is really one between the originator of such policy and the recipient of the consequences of that policy. Though a bond-buying programme of the magnitude of quantitative easing aims to inject liquidity into the economy, this liquidity often flows to emerging economies and, instead of reviving the real sector, often drives up the capital markets. Another aspect of the programme is that the money released from the bonds bought back by the US Federal Reserve has to be absorbed, ultimately, by the private sector. This absorption depends on the capacity and capability of the private sector and is a tough task, given the slow growth globally. Globalisation and the connectedness of economies make us share the common economic realm and this is where Rajan's concerns lie. The issue he raised is actually a debate of concerns and, therefore, should leave no room for rebuttals.
Ravindra R Muley, Navi Mumbai
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