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Higher inflation may not be a bad thing at this point

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The government has relaxed the terms of responsibility for the principal employers in case the contractors.

4 min read Last Updated : Jul 27 2020 | 4:30 PM IST

How do you make a deflated balloon inflate? You blow air into it. And how do you make a deflated economy inflate? By blowing money into it.

This simple solution is called the Modern Monetary Theory (MMT) by self-important economists. But what the economists don’t tell you is how much money to blow in. You blow too little and the economy remains flaccid. You blow too much and like the balloon it runs the risk of bursting i.e. running into high inflation.

The world doesn’t give India any credit for finding the right way of dealing with this problem but

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

Topics : Indian Economy Reserve Bank of India Economic slowdown Petroleum

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