Within this, the role of monetary versus fiscal policy often gets debated. We will focus on fiscal policy, which sees high conviction views. On one hand, the argument goes that government should go ‘all out’ never mind the fiscal, given the current state of the economy. On the other, caution is expressed given the ‘effective’ public deficit as opposed to the actual printed one. Rather, public deficit has expanded as private investments have been subdued, courtesy our famous ‘twin deficit’ problem.
Source: Mint December 09, 2019 00:33 UTC