The economy is growing strongly, but is weak. How come?

"Financial markets are starting to get rattled by the winding down if unconventional monetary policies in many advanced economies," wrote Prof Nouriel Roubini. The Federal Reserve in the US is in the best position to get out of unconventional monetary policies, such as zero interest rate and quantitative easing, but its equilibrium level "will be no higher than 3%".  "It is worth remembering that in the Fed's previous two tightening cycles, the equilibrium rate was 6.5% and 5.25%, respectively." Even if the Fed succeeds in reaching an interest rate of 3% it will have little room to maneuver when the next recession hits. There are 4 options for central banks of rich countries. They can revert to zero interest rate and quantitative easing, they can set negative interest rates, as some countries, including Japan and the Eurozone, have already done, they can set a target of 4% inflation rate, but that would increase inflation expectation, and they can set an inflation target of 0%, as the Bank of International Settlements has suggested. "Given that financial push is bound to come to economic shove, once again, unconventional monetary policies, it would seem, are here to stay." Prof Roubini seems to be convinced that another recession is bound to happen. So, what happens to India? There were howls of anguish after the Reserve Bank left its policy rate unchanged at 6.25% in June, despite projecting headline inflation rate of 2-3.5%, much below its target of 4%. Figures released yesterday showed that retail inflation in June had fallen to 1.54% in June, from 2.18% in May. Prices of vegetables have doubled in the past 2 months, as the effects of demonetization have passed. Industrial Production grew by a mere 1.7% in May, compared to 3.1% in April. Despite slowing to 6.1% during demonetization, GDP grew at 7.1% in the last financial year. Agricultural output increased last year after a good monsoon, causing prices to drop and leading to farmer suicides. This has led to a tit-for-tat loan waiver for farmers by state governments. State governments will have to borrow more at higher premiums, thus pushing up interest rates. A report by the Centre for Equity Studies claimed that economic growth has not created jobs. It said that people are being forced towards the informal sector. On the other hand, 10.13 million people subscribed to the Employees' Provident Fund Organisation in the first half of this year, which shows that lots of people in formal employment were not being counted. If the economy is growing at over 7% and employment is so high why are prices so soft, why is industrial production stagnant and why are savings and credit growth so weak? And why are people with PhD degrees applying for jobs as mortuary attendants? When global recession recurs, as Prof Roubini predicts, we will be safe, because no one will know what is happening here. Because we are confused as well.