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T C A Srinivasa-Raghavan: The 3 per cent non-solution

Arun Jaitley needs to read L K Jha's 1981 book, which advocated slightly higher deficits

T C A Srinivasa-Raghavan

Never in the field of human conflict was so much owed by so many to so few," said Winston Churchill in 1940 when a few hundred British fighter aircraft were fending off a few thousand German bombers. In a like manner, where economists are concerned, never in the field of human endeavour has such a small group of intellectual charlatans inflicted so much damage on so many. Many examples of the harm they have done can be given. But here, let's only examine the notion that the ideal level for a country's fiscal deficit is three per cent of its gross domestic product ...