It's been a bad, veering on a terrible week, on the diplomatic front, for India. The only thing left to make it worse would be a defeat by rookies Afghanistan on the cricket field, in the ongoing Test match in Bengaluru. That improbable scenario would cap the debilitating and frustrating week and month it's been for India, in Washington, DC, the United Nations, and elsewhere.

The government of India has set up a committee under Punjab National Bank non-executive chairman Sunil Mehta to consider the establishment of an asset reconstruction company in yet another push to help resolve the bad loan burden that afflicts the banking industry, said acting finance minister Piyush Goyal.

Hoover Institution fellow Raghuram Rajan discusses the possibility of the next recession when and if indeed it's likely to happen in the next 12 to 18 months as well as the combination of rising interest rates and some untoward action on trade.

Hoover Institution fellow Raghuram Rajan says that emerging markets will face stress as they cope with a stronger dollar and rising interest rates, but Asia appears to be insulated, for now. Rajan notes that the central banks need to understand the consequences of their actions on other countries.