Parachuted from the finance ministry, Reddy’s successor, D. Subbarao, responded to the global crisis follow collapse of Lehman Brothers in September 2008 by flooding the financial system with money and bringing down the policy rate to its historic low. Indian banks were also allowed to restructure those loans that had gone bad. It helped borrowers—affected by demand recession globally and the collapse of the exports markets—who were not in a position to pay back to the banks. India could stage a sharp, V-shaped recovery but the ultra-loose monetary policy and loan restructuring had sown the seeds of inflation and piles of bad assets. What happened next? Read ‘From Lehman to Demonetization’ - http://amzn.to/2AucbeQ …see more