The Real Economy Holds The Answers
( The following article appeared in Economic Times on October 2, 2020, per link below:https://economictimes.indiatimes.com/news/economy/policy/view-alongside-stimulus-real-economy-bottlenecks-blocking-job-creation-and-output-must-be-removed/articleshow/78450974.cms ) The Real Economy Holds the Answers When our country emerges from Covid-19, we will need high and sustainable economic growth to heal our economy. Can this be achieved by putting money in people’s hands, and stoking demand? Money creation through fiscal and monetary policies should indeed spur domestic demand. However, in the past, we have struggled to grow domestic output and jobs alongside. As a result, inflation, external imbalance and financial instability have periodically resulted, rather than sustainable growth. Alongside any stimulus, we have to address the real economy bottlenecks that come in the way of creating domestic jobs and output. Money and Economic Activity “Money” in this article refers the t