New Delhi, Aug. 5 -- The reaction of global markets to the US Federal Reserve's monetary stance suggests investors are vesting too much faith in easy money to promote investment and growth. That may be a mistake, one that could get compounded if Indian policymakers take a cue from it and lay excessive emphasis on the central bank's policy rate of interest as a solution to the economic problems the country faces. Indeed, the Reserve Bank of India (RBI) does have more leeway to reduce its repurchase (repo) rate, now that the Fed has lowered its own lending rate in the US by a quarter percentage point-its first cut since the financial crisis of 2008-09. The move was along expected lines and would have passed without causing much flutter had the Fed chairman, Jerome Powell, not spoilt the mood among investors by calling the cut a "mid- cycle adjustment"-in other words, a one-off. That was enough to spook equity markets around the world, which had been pencilling in an entire season of easing. Their presumption is that more cuts are essential to keep the wheels of the global economy spinning. In this, they seem resistant to evidence that the efficacy of monetary policy is diminishing. In the West, this is largely because the cost of capital is already very low by historical standards. Plus, much cheap credit goes into chasing higher-paying assets around the world instead of spurring business activity. In India, monetary policy is even less potent in spurring investment. Various other factors beyond the cost of capital act as a drag....