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Showing posts from November, 2014

End Austerity Policy

Our macroeconomic policy stance is and has been seriously wrong for a long time. Time we seriously reviewed it.
We have been chasing the chimera of fiscal adjustment most unthinkingly. In the bargain we have killed growth, governance, public service delivery and perhaps even the state. Let us see how?

Consider an economy where economic growth has slowed down and large fiscal deficits have led to a growing debt stock and balance of payments difficulties.  No doubt such an economy needs adjustment. The question is how?

Several options are available.

The best approach is to address the fundamental causes that have caused the slowdown in the economy. Often the source of the economic difficulties is deep-seated structural issues such as a bloated government based on poor expenditure choices and a poorly developed mismanaged public sector enterprise sector, poor market regulation, low quality of governance and regulation that drives up the cost of doing business, and several legal rigidit…

Interview on economy with Amir Suhail.