A mistake from 2008 may return to haunt India’s economy

A mistake from 2008 may return to haunt India’s economyIn all the 30 most severe credit boom episodes around the world, where credit in the economy grew at a speed faster than the economy itself for five years or so, GDP growth in the next five years halved in those countries. This includes Japan in the 1980s, Greece where private credit almost doubled from 2002 to 2008, Thailand before the Asian financial crises, and the subprime lead credit boom prior to 2008 in the US.

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