Fiscal Policy : Are we planning to go into a recession?

26 Feb

I want you guys  to read the article Wrong Doctor, wrong treatment from the editorial of the Business Line and give it a serious thought. 

But i must caution that if you are not a keen follower of economic policies happening in India and across the world then you will not be able to grasp the real concept behind what the author is trying to convey in the article. Written in clear and simple words the author of the article is wondering if tthe Govt going dangerously wrong in itr fiscal and monetary policy. 

I personally think there is a element of  merit in the arguments put forth in the article. 

Are we trying to spend the money which we dont have ? Is it not similar to what happened in America in between 1993 and 2007 , the effect of which is now seen as the economic recession now. So, are we getting the wrong economics right in the wrong propotions? 

Are we spending more than what we should be spending ? Are we taking the fiscal problem in a lighter sense ? 

I dont care what economist you believe in . I personally go for Keynesian . Always have. But you may be a Friedman fan for all I care.

But today’s economic situation is so differenent in its scale and scope that I am willing to let go of Keynesian theories and embrace which will work and sound logic from an development prespective. 

I implore you guys to read the article . 

Please drop in your queries, doubts, ideas, thoughts so we can have a sensible discussion this and take it forward.

Also read my post on Is India still in recession to understand what is happeining to our economy.

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2 Responses to “Fiscal Policy : Are we planning to go into a recession?”

  1. How to Get Six Pack Fast April 15, 2009 at 1:51 pm #

    My fellow on Facebook shared this link with me and I’m not dissapointed at all that I came here.

  2. spartanvikas April 15, 2009 at 3:42 pm #

    Mate ,

    I am glad you enjoyed reading my posts. But I havent even begun blogging seriously yet.
    Once i do i am goona mail you for inputs .

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