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Economy

1
Economy

Economy needs the lunch to be served. It doesn’t have to be free.

A fiscal lifeline to the industry has to be conditional. There are tools that can ensure the exchequer gets good returns on the money invested to rescue companies. The TARP mechanism used by the US during the 2008 crisis is a classic example. For India, the returns from a private-sector stimulus can ease fiscal deficit by 5 bps.

headset AUDIO SUMMARY . 01:31
Economy

INR16 lakh crore hit; dual demand, supply shocks. The ravaged economy needs a big, swift stimulus.

The Indian economy is confronted with severe demand and supply blows. It’s a rarest-of-the-rare occurrence and the country must respond with a swift and large stimulus to support businesses, jobs, and wages. Deficit financing is an option — with the RBI possibly printing new money — to give an adrenaline shot. John Maynard Keynes would have approved.

headset AUDIO SUMMARY . 01:39
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