Threshold as some
measure of GDP may not be, but the measures, itself, we choose to take after
running deficits and debts to cover the deficit could be. I mean the moment we
start realizing that debt has become a burden on GDP and can not be satiated
with the GDP, in the next period(s), through taxes, without affecting the level
of demand or other measures like paying out of our foreign-exchange reserves or
simply resorting to print currency and pay-off debts without losing our
purchasing power and adding to inflation. But, the best measure to decide the
threshold is that we cannot pay the debt out of our GDP in the next period(s)
without affecting demand. And, there could be second, third, or fourth
thresholds as we can decide as per our priorities.
Tuesday, August 3, 2010
Subscribe to:
Post Comments (Atom)
Anchoring Expectations in a Volatile Cycle: India’s Exchange Rate, Inflation, and the Role of Monetary Signalling.....
India’s macroeconomic landscape today reflects a delicate balance between growth support and price stability, shaped not only by real econom...
-
Central banks around the world face a perennial challenge: maintaining price stability while fostering conditions for full employment. Conv...
-
Introduction The budgetary highlights for 2025-26 and 2026-27 indicate a tightening fiscal policy aimed at reducing the fiscal deficit fr...
-
Introduction India's economy heavily relies on imported oil and gas, with over 85% of its crude oil needs sourced from abroad. This de...
No comments:
Post a Comment