Former Deputy RBI Governor Subir Gokarn talks about the monetary policy outlook keeping in mind the recent recovery on the macro front. With worries on current account deficit receding, fiscal concerns are back on the radar and with 74.6 per cent of full year fiscal deficit hit already the government may need to cut expenditure to be able to meet its 4.8 per cent fiscal deficit target, he says. He also says a US debt default though highly unlikely is a key risk for global economy.
