The making of another storm

A rapid rise in the number of new Covid-19 cases has increased risks for economic recovery. Hopefully, the spread will be contained quickly and not significantly affect economic activity. But the virus is not the only challenge for Indian policymakers. Evolving conditions in both domestic and international markets can materially increase policy complexities. The latest monthly bulletin of the Reserve Bank of India (RBI), for instance, argued that “bond vigilantes” could undermine the recovery. It further noted that the RBI “is striving to ensure an orderly evolution of the yield curve, but it takes two to tango and forestall a