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- Jul 15, 2022
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Yea, 1980s were tougher for India, until the 1991 reforms.
But how can we just comment that our administrators lack basic knowledge. You are talking as if the Indian policymakers don't know the abc of economics..
Why the great Harvards and Stanfords failed to stop 2008 recession then. Or, Were the 'ida odhukeedu' Indian IAS posted on deputation there in 2000s? Japan, who had the great growth story since Hiroshima Nagasaki, too had a large economic downturn.
During the same period when the reforms started in India in 1991, Japanese economy nosedived. That would tell you the story of what would happen when people are neither willing to spend nor willing to invest. They just hoard money. Why???
Why not?? When I know that my money values more tomorrow, I am more than happy to sit on the money. Risk of deflation is the liquidity crunch.
Imagine such scenario in vast and densely populated nation like India. If people just decide not to spend and not to invest. If a liquidity crunch hits India, it would be the worst nightmare.
But how can we just comment that our administrators lack basic knowledge. You are talking as if the Indian policymakers don't know the abc of economics..
Why the great Harvards and Stanfords failed to stop 2008 recession then. Or, Were the 'ida odhukeedu' Indian IAS posted on deputation there in 2000s? Japan, who had the great growth story since Hiroshima Nagasaki, too had a large economic downturn.
During the same period when the reforms started in India in 1991, Japanese economy nosedived. That would tell you the story of what would happen when people are neither willing to spend nor willing to invest. They just hoard money. Why???
Why not?? When I know that my money values more tomorrow, I am more than happy to sit on the money. Risk of deflation is the liquidity crunch.
Imagine such scenario in vast and densely populated nation like India. If people just decide not to spend and not to invest. If a liquidity crunch hits India, it would be the worst nightmare.
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