The current economic recession has elicited varying degrees of policy response around the world. While policymakers in some countries like the US and those of the Eurozone have responded with a wide range of stimulative measures, India has been relatively muted in its response – the government justification for this being that it does not want to repeat the mistakes of the 2009-11 period, in which a post-GFC stimulus package ended up causing a currency crisis and inflationary spiral two years later.