Just couldn't resist cut and paste this. It aptly sums up the state of affairs on both sides of the Atlantic and elsewhere.
In both Europe and the US, the need of the hour is much more aggressive monetary accommodation and fiscal stimulus. In Europe, national politics, especially in Germany, will not countenance such expansionary policies. Similarly, in the US, Republicans see debt and inflation as greater threats and oppose any further expansion.
In fact, it appears to be equally valid for India too. In the prevailing environment, there appears to be space only for "rights-based" policies - right to employment, education, food, and so on. The most important requirement, critical to sustaining the ambitious growth rates, is to ease supply-side bottlenecks - expediting investments in infrastructure, increasing the supply of quality manpower, labour market reforms etc. Unfortunately, none of this appears forthcoming in these times of policy paralysis.