gdp: point of view: direct cash transfers are not the vaccine to revive gdp. It’s not even anti-viral remdesivir

0

Economists like Raghuram Rajan, Abhijit V Banerjee and Manmohan Singh, as well as politicians like P Chidambaram and Yogendra Yadav, have advocated for more money to be put in people’s hands. But they didn’t say “How?” “, ” How much ? “And” At what price? “

Synopsis

Economists like Raghuram Rajan, Abhijit V Banerjee and Manmohan Singh, as well as politicians like P Chidambaram and Yogendra Yadav, have advocated for more money to be put in people’s hands. But they didn’t say “How?” “, ” How much ? “And” At what price? What is the magic number of the fiscal deficit appropriate to balance the macroeconomic consequences of direct cash transfers (CSDs)?

If the simple act of printing more money and distributing money had caused GDP to explode, then Robert Mugabe would be the best Keynesian economist in the world and Zimbabwe the king of GDP. John Maynard Keynes advocated printing money in a “depressed” economy to create demand which, in turn, would spur more investment, and thus allow the “virtuous cycle” to begin. If a similar injection of funds is made today, it is very unlikely that it will revive

  • GIFT ITEM
  • FONT SIZE
  • TO REGISTER
  • TO PRINT
  • COMMENT

Log in to read the full article

You have this Prime Story as a free gift

Already a member?

Special offer on ET Prime

Get 20% off

ON AND PRIME SUBSCRIPTION

Get the offer

Why ?

  • Exclusive Economic Times Stories, Editorials and Expert Reviews in more than 20 sectors

  • Stock analysis. Market research. Industry trends on more than 4000 shares

  • Own experience with
    Minimum ads

  • Comment and engage with the ET Prime community

  • Exclusive invitations to Virtual events with industry leaders

  • A trusted team of Journalists and analysts which can best filter the signal from noise


Source link

Share.

Comments are closed.