Between last week and current, RBI 's activity to ease the liquidity situation led to downward revision in CRR in two phases thus injecting 20,000 cr and 10,000 cr into the system... add to this 25,000 cr of farm loan waiver which is being supplied to banks and in a crude fashion convert to dollar denomination ..... this equals a whopping $ 27 billion in a matter of 10 days!!
$250 billion is the quantum of money deployed in last week by US to to keep the economy afloat.
Compare the above nos with this information :
Size of US economy approx $14 trillion
Size of Indian economy approx $ 1 trillion
and we dont even have a subprime related issue .. :)
this is perpective ! .......... smirks chintu !