From the Economic Times…
…Sunil Subramaniam: The quantitative easing, sort to speak, is likely to continue because advanced economies are not showing any signs of revival in the growth. I think the advanced economies are clocking just around 2 per cent GDP growth. Over the next three to four years, also as per the IMF forecast, they are likely to remain at about the same levels.
Tools at the hand of any government are of three types. In the first case, the central bank tries to [rate] cut policy. In the second case, the central bank tries to pump in liquidity through a monetary stimulus — so there is a rate cut and a monetary stimulus. The third is what the famous economists call ‘pump-priming.’ It is a fiscal stimulus by the government wherein it goes and spends money on infrastructure and other sectors.
http://economictimes.indiatimes.com/articleshow/53351659.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst