The US is likely to continue with soft monetary and fiscal policies for a lot longerinflation isnt a real worry and output has been hopelessly slow in showing recovery. As long as the dollar is the worlds reserve currency, the US can sustain this strategy for a while longer. India, too, must continue with relatively easy monetary policy for a while longer and only gradually move to an exit from stimulus. On the fiscal side, the government has acted sensibly by reforming costly fertiliser and oil subsidy as a means to rein in the deficit rather than go for serious cuts elsewhere. Chinas dilemma is more complex because of pressure on asset prices, but they have acted in their own way by beginning a revaluation of the yuan. Europe simply has no choice but to cut deficits and cut debt straight away. It may indeed cost in terms of growth in the short run but it will yield positive results in the medium term, especially if Europe undertakes structural reforms that will unleash growthEurope needs to finally address its supply-side bottlenecks. Expect a completely uncoordinated exit from stimulus during the rest of the year.