"What is the guarantee that more liquidity would have stopped the fall in equity prices?" he asked, adding: On the other hand, adding more liquidity would have added to inflationary pressures and might lead to more problems for the real economy." "There is a liquidity crisis globally and Indian markets are not immune to that," he said. "FIIS are selling ruthlesslessly to take out whatever money they can because yen carry trade has gone even more out of hand and they are under tremendous liquidity pressure in their home countries."