Who have not listened to my speech at @vifindia fully, not reading researches in development economics, trivialise suggestion of deficit financing. Challenge them to counter the facts. Had India partly deficit financed during 2014-17... Read on and respond
Bank credit to GDP ratio was down from 10.9% in 2010 to 5.7% in 2015 to 4.8% in 2016. Fiscal deficit also came down in this period. With the result the aggregate money into the economy halved from 17.4% of GDP to 8.4%. I suggested to govt when credit goes down deficit should rise
FRBM law prevented this. I suggested the amendment of FRBM law. A committee was also appointed. The FRBM is law is outdated after 2008. Monetary expansion is now the order of the day. Deficit financing of deficit is not per se bad. In times banking stress it is good
The IMF said on 1999 deficit is preferable to govt borrowing from banks and crowding out private investment which is happening in India in a big way. Had India not followed theoreticians it would have fared better. The US & EU ignored theoreticians in 2008 & survived.
Abenomics in Japan is against all theories and it is a success in generating business, jobs and exports in Japan. It is because they think independently. Here we troll anyone who think independently. Independent thinkers have always struggled against howls of crowds.
In India the source for money supply is USD inflow into India. If the USD outflows money supply contracts. Can national economy work on this logic? Is anyone thinking
