US
There is hope continuity of political process may ease economic woes
This situation can only be managed through unconventional measures, which a political government may adopt
Currency rate provides main channel that fuels inflation in country
Attempts to bring down inflation via conventional measures will be politically costly
Inflation reduction will likely come at expense of large output drop
Growth in imports will put pressure on rupee whenever economy grows at high rate
Situation requires astute policymaking but political turbulence a stumbling block
Jacking up of policy rate will further slow economy along with high inflation
SBP cautious about raising policy rate despite massive currency devaluation
If govt does not intervene in market, it will lead to unfettered capitalism