Pangs of Readjustment

EPW Research Foundation Pangs of Readjustment The rather painful readjustment of the money market, from a situation of externally-injected excess liquidity to one of liquidity shortage, has been seen in (a) selling pressure on equities, PSU bonds, UTI units and gilt-edged; (b) drying up of the market for such money market instruments as bills and CP; and (c) firming up of interest rates, both shortand long-term.