{"id":34945,"date":"2018-10-31T14:32:55","date_gmt":"2018-10-31T09:02:55","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34945"},"modified":"2018-10-31T14:32:55","modified_gmt":"2018-10-31T09:02:55","slug":"what-stimulus","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/what-stimulus\/","title":{"rendered":"What stimulus?:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/indianexpress.com\/article\/opinion\/editorials\/economy-gdp-public-investment-private-consumption-4861108\/\"><span style=\"font-weight: 400;\">What stimulus?<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ways to revive the Indian economy<\/span><\/li>\n<\/ul>\n<p><b>Why there is an expectation of a fiscal stimulus amongst a large section of industry and economists?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is no sign of revival in corporate investment or exports<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a slow-down in private consumption due to jobless scenario<\/span><\/li>\n<\/ul>\n<p><b>What should the government do?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The government should put more money in highways, railways, irrigation and other public-funded infrastructure.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> It might increase the fiscal deficit, but that problem will take care of itself once growth returns and revenues, too, show corresponding buoyancy. <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There is a requirement of public sector managers E. Sreedharan, Verghese Kurien or Narla Tata Rao to take up projects<\/span><\/li>\n<\/ul>\n<p><b>What is the solution? <\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Boosting private consumption as against public investment is a more efficient way to revive the economy<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">All fiscal stimuli were not successful in providing a necessary short-term demand boost to the economy. For example, the fiscal stimuli adopted by the government post the 2008-09 global financial meltdown<\/span><\/li>\n<\/ul>\n<p><b>What is the incumbent government\u2019s commitment?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Unlike its predecessor, the current NDA government has shown greater commitment to fiscal and monetary prudence<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Low inflation and stable exchange rate regime has helped attract foreign capital flows both direct as well as portfolio investment in equities and bonds.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">These flows to finance its external current account payments deficit so the government need to take calculated risk while deviating from the path of macroeconomic stability<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What stimulus?:\u00a0 Context: Ways to revive the Indian economy Why there is an expectation of a fiscal stimulus amongst a large section of industry and economists? There is no sign of revival in corporate investment or exports There is a slow-down in private consumption due to jobless scenario What should the government do? The government&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/what-stimulus\/\">Continue reading <span class=\"screen-reader-text\">What stimulus?:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34945","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704817150},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34945"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34945\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}