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The appreciating rupee, unabated inflationary pressures and a declining GDP, all being witnessed by India today, together constitute an economic situation that economists sometimes refer to as a ‘trilemma’ or the ‘impossible trinity’. Such perplexing combinations of economic phenomena have been a cause of worry for governments and central banks in respect of most of the developed countries during some part of their fast-growth period.

Such a difficult economic situation will have its impact not only on the economy of the nation but wields an influence also on the stability of the international financial system, given the importance of bilateral economic relations on the international economics.

Normally, in a trilemma situation, when one issue is tackled, one more almost always vanishes along with it, ultimately leaving only one major issue to be tackled. India has proved in recent years that it has the inherent strengths and resilience to bounce back to economic vibrancy from dilemmas and trilemmas.

N. Vijayagopalan, Bangalore

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